China is pushing for reserve status for the yuan at the International Monetary Fund. Photo / Bloomberg
China is pushing for reserve status for the yuan at the International Monetary Fund. Photo / Bloomberg
China will open its domestic foreign-exchange market to overseas central banks, making it easier for other nations to hold yuan assets as Asia's biggest economy pushes for the currency to win reserve status at the International Monetary Fund.
The country will keep the yuan stable at a reasonable, equilibrium level,Premier Li Keqiang said during a speech at a World Economic Forum meeting yesterday. The People's Bank of China shook up global markets with a devaluation on August 11. Overseas monetary authorities have already been granted access to China's interbank bond market.
"The participation of foreign central banks will make the onshore yuan's exchange rate more globally recognised," said Banny Lam, co-head of research at Agricultural Bank of China International Securities in Hong Kong.
The decision will help further China's push for the yuan to join the US dollar, euro, yen and pound in the IMF's Special Drawing Rights basket of reserve currencies.
