The Research On The Influence Of RMB Into The Currency Basket Of SDR

On October 1,2016,RMB joined the Special Drawing Rights currency basket officially.This is the first time that the International Monetary Fund adds a developing country currency into the special drawing rights currency basket.After RMB joined SDR,the proportion of the currencies in the basket was 41.73%,30.93% in the euro,10.92% in the yen,8.33% in the yen and 8.09% in the pound.The rise of emerging economies injects new vitality to the global economy.And the contribution of developing countries represented by China to the growth of the world economy can't be ignored.The decision means that RMB will be regarded as an international reserve currency.This is a milestone in the process of RMB internationalization and is also an important step in the reformation of the International Monetary System,which will have a far-reaching affect on the International Monetary Fund and China.This article mainly analyzes the affect of RMB on the special currency of the Special Drawing Rights,which is mainly analyzed from three aspects.The first part is the affect on the SDR itself.Since the SDR started,there are many shortcomings,and its proportion of the international reserve currency system is very small,and it didn't play its proper role.Under the circumstances of the world multi-polarization development,the previous four major currencies in the basket that had come from the developed countries,cannot satisfy the needs of economic development,and also is unable to meet the aspirations of emerging economies.After RMB joining the currency basket,it will enhance the representation of SDR and further enhance the stability and legitimacy of SDR.In the future the SDR will play a greater role.The second part is the affect on the International Monetary System.After a series of reformation,there are still some shortcomings.Such as the reserve currency depends on dollar and the exchange rate fluctuates unsteadily and other internal defects.After RMB included in the basket,it will increase the diversity of reserve currency,and improve the stability of the international reserve system.It also can reduce the fluctuation of international exchange rate,and promote the reform of the International Monetary System.The third part is the affect on our country.The addition of RMB is one of the achievements of RMB internationalization,and it will further promote the RMB internationalization.As an international reserve currency,RMB will greatly enhance Chinese international status,and is also the right to speak in the international economic affairs.It's good for safeguard of the economic interests of developing countries.As Chinese financial market development is not mature enough,RMB will join the reform of Chinese financial system to accelerate the process of convertible capital projects.Joining the SDR currency basket for the affect of our country is multi-level,not only has a positive affect,but also brought some risks.While accelerating reform and opening up,China may be affected by the impact of speculative capital and the volatility of the exchange rate.In the last chapter,the article provides some suggestions.China should comprehensively improve the anti-risk ability of financial institutions,and effectively innovate monetary policy and currency management.China should steadily promote the reform for RMB to provide a more solid domestic foundation and backing.