Study on the Influence of RMB’s Entry into SDR on the Interest Rate of SDR
- 1 College of Economics, Jinan University, Guangzhou, China
Abstract
On October 1, 2016, with the approval of the International Monetary Fund, the RMB officially joined the SDR currency basket, which not only recognized the international status of RMB, but also injected new vitality into the development of the world economy. SDR interest rate is an important part of SDR valuation and pricing. Based on the background of RMB entering the SDR currency basket, this paper divides the study period into three parts to analyse the impact of RMB enter the basket on the SDR interest rate: a complete review period before the RMB included; the IMF announced that it will accept the RMB but not yet; and the RMB is officially “add to the basket”. The results of the study show that RMB’s participation in the SDR basket significantly improves the SDR interest rate level, helps to improve the stability of the SDR interest rate and the representation of the SDR interest rate to the global economy, and is expected to help build a new order in the international monetary system.
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