The latest round of five-year review of the currencies of the SDR basket decided to include Chinese renminbi (RMB) in the SDR basket. Effective October 1, 2016 the Chinese RMB, will be a part of the basket in addition to the current SDR basket currencies which consist of the U.S. dollar, euro, Japanese yen, and British pound sterling.

As a result, the RMB is a freely usable currency as set forth in the Articles of Agreement. This means that the RMB will play a more central role in the financial operations of the IMF. For example, members borrowing from the Fund can receive disbursements and make repayments in RMB. The inclusion of the RMB into the SDR basket also means that a RMB instrument will be included in the calculation of the SDR interest rate.

 New vs. Old Weights