A Study On The Influence Of RMB On SDR Currency Basket

In American local time November 30, 2015, the International Monetary Fund announced RMB to be a new currency of SDR basket, together with U.S. Dollar, Euro,Japanese Yen and British Pound. This means the authoritative recognition of RMB to play the role as a reserve currency with the major currencies. This is not only an event of international finance, but also has a profound influence in many aspects. As a currency of developing country, the involvement of RMB has more meanings.The paper analyzes the impact from two aspects, the influence on the international monetary system reform and the influence on China. The paper makes a conclusion that the involvement of RMB is good for the reform of international monetary system. And there are both positive and negative effects on China. It’s beneficial for RMB internationalization, the management of reserve assets and the promoting of China’s international status. However, it may also increase the impact of international hot money, make our domestic financial reform and monetary policy face more challenges.To coping with the challenges of the event, the paper puts forward several relevant policy suggestions that China should further the financial system reform,open up onshore market, promote the transformation of central bank’s function, and rebuild the financial regulatory system.