2015-11-19 — ft.com
Numbers aside, the bigger ramifications of SDR inclusion come from its effect on financial reform. Xiangrong Yu, economist at CICC, likens it to the impact of China joining the World Trade Organisation in 2002. "Even if the renminbi fails to be added this time around, it will be impossible to reverse these reform measures," he adds.
Changes so far seen include the scrapping in July of the need for central banks and other sovereign-linked players to gain approval to invest in China's onshore bond markets. After all, reserve managers that want to add renminbi, however slowly they do so, will need assets to buy. And China likes and needs long-term steady investors...
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