economics medium True/False

The Special Drawing Rights (SDR) basket is reviewed by the IMF every five years to ensure it reflects the relative importance of currencies in the world's trading and financial systems. The Chinese Renminbi (Yuan) was added to this basket in 2016.

  1. True
  2. False

Answer: True

The inclusion of the Chinese Yuan in 2016 was a landmark event, marking the first time a new currency was added to the SDR basket since the Euro's creation. It signaled the IMF's recognition of China's growing integration into the global financial system and its efforts to internationalize the Yuan, joining the USD, Euro, Yen, and Pound Sterling.

Topic International Economics - Institutions
Exam Relevance UPSC Prelims, Banking, SSC
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