CRI听力:IMF launches new SDR basket including China's RMB

IMF managing director Christine Lagarde has announced that the Chinese currency has joined the ranks of US dollars, the Euro, the Japanese Yen and the British Pound to represent a more diversified global currency.

"The Renminbi's inclusion reflects the progress made in reforming China's monetary, foreign exchange, and financial systems, and acknowledges the advances made in liberalizing and improving the infrastructure of its financial markets."

She believes it is an important step in the integration of the Chinese economy into the global financial and monetary systems and will support global growth.

"The continuation and deepening of these efforts, with appropriate safeguards, will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy."

Rory MacFarquhar, a visiting researcher at Peterson Institute for International Economics, said the inclusion of RMB in the SDR means more global responsibility on China.

"The inclusion of RMB in the SDR is arguably puts a lot of new responsibility on China. It does mean that China has taken on these responsibilities and very much now going forward will have to bear in mind its global responsibilities in the conduct of its exchange rate policy and more broadly its macro-economic management policy."

In his view, the currency exchange rate is no longer a hot issue between China and the U.S., but he urged the Chinese side to be more cautious in rolling out macro-economic policies.

Some in the U.S. are concerned that the inclusion of RMB in the SDR basket may further strengthen the Chinese currency and eventually challenge the dominance of the U.S. dollar.

Chinese Ambassador to the U.S. Cui Tiankai made it very clear that China has no intention to challenge any country.

"The internationalization of the RMB is an historical process. It just started. China has always maintained the idea of win-win cooperation, either in financial, monetary or other fields of global economy. We have never set the goal of challenging other countries for our own development. Our goal is to let our people live a better life."

Created in 1969, the SDR is an international reserve asset for member countries. The value of the SDR is defined using a basket of major currencies which are selected based on their importance in the world financial and trading system. The weight of the RMB has been set at 10.92%.

Xiaohong, CRI, Washington.