International Monetary Fund (IMF) Managing Director Christine Lagarde said the staff has proposed to the Executive Board to include Chinese currency, the RMB, into its SDR basket as a fifth currency.

The staff also finds that the Chinese authorities have addressed all remaining operational issues identified in an initial staff analysis submitted to the Executive Board in July, said a paper issued to the Executive Board on the quinquennial review of the SDR yesterday.

The People's Bank of China (PBoC), the country's central bank, said "the inclusion of the RMB in the SDR basket would increase the representativeness and attractiveness of the SDR, and help improve the current international monetary system, which would benefit both China and the rest of the world."

If the IMF Board agrees to include the RMB into the SDR basket this month, the actual effective date will be September 30, 2016.

The IMF reviews the currencies in the SDR basket every five years, and whether to add the RMB to the basket is a major issue for this year's assessment.

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