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China’s process of yuan internationalization and promotion of financial market reform could see the yuan become the fifth currency in the basket.

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The International Monetary Fund is set to meet in November to formally discuss whether China’s yuan should be included in the fund’s currency reserve basket, reports Xinhua News Agency.

Experts told the news agency that taking into account China’s process of yuan internationalization and promotion of financial market reform, the currency, also known as the renminbi (RMB), could be set to become the fifth in the basket alongside the US dollar, euro, British pound and Japanese yen.

Despite previous opposition, the US may yet decide to back the IMF’s decision, with former US Treasury official Edwin Truman telling Xinhua that should the country support the move, the RMB’s inclusion would be a much higher possibility.

China’s deputy central bank governor, Yi Gang, sought to reassure the IMF regarding the RMB’s eligibility in an address to the fund’s main advisory committee, reports Reuters, adding steps continued to improve transparency of Chinese data.

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