AJIBM  Vol.9 No.2 , February 2019
Study on the Influence of RMB’s Entry into SDR on the Interest Rate of SDR
Abstract: On October 1, 2016, with the approval of the International Monetary Fund, the RMB officially joined the SDR currency basket, which not only recognized the international status of RMB, but also injected new vitality into the development of the world economy. SDR interest rate is an important part of SDR valuation and pricing. Based on the background of RMB entering the SDR currency basket, this paper divides the study period into three parts to analyse the impact of RMB enter the basket on the SDR interest rate: a complete review period before the RMB included; the IMF announced that it will accept the RMB but not yet; and the RMB is officially “add to the basket”. The results of the study show that RMB’s participation in the SDR basket significantly improves the SDR interest rate level, helps to improve the stability of the SDR interest rate and the representation of the SDR interest rate to the global economy, and is expected to help build a new order in the international monetary system.
Cite this paper: Zhao, D. (2019) Study on the Influence of RMB’s Entry into SDR on the Interest Rate of SDR. American Journal of Industrial and Business Management, 9, 283-294. doi: 10.4236/ajibm.2019.92018.

[1]   Benassy-quere, A. and Capelle, D. (2011) Can the Renminbi Make the SDR More Attractive? Journal of La Lettre Du Cepii, 9, 1-4.

[2]   Su, Z., Hu, D. and Fang, T. (2015) The International Influence of RMB Joining the SDR—A Measurement Based on Scenario Analysis. China Industrial Economics, 12, 5-19.

[3]   Shi, J.Y. (2016) Research on the Impact of RMB’s Inclusion in SDR Currency Basket. Master Thesis, China Foreign Affairs University, Beijing.

[4]   Zhao, H.F. (2017) Research the Impact to China and IMF When RMB Join SDR. Reform of Economic System, 5, 136-141.

[5]   Clark P.B. and Polak J.J. (2002) International Liquidity and the Role of the SDR in the International Monetary System. IMF Working Paper 02/217, Washington DC.

[6]   Zhou, X.C. (2009) Thoughts on the Reform of the International Monetary System. China Finance, 7, 8-9.

[7]   Qian, W.R. and Pan, Y.L. (2013) SDR Currency Basket Needs RMB: A Perspective Based on the Stability of SDR Valuation. World Economic Research, 1, 3-9.

[8]   Zhao, R.R. (2013) Motivation and Path for China to Promote RMB’s Accession to SDR under the Background of RMB Internationalization. International Finance Research, 3, 49-57.

[9]   Benassy-Quere, A. and Capelle, D. (2014) On the Inclusion of the Chinese Renminbi in the SDR Basket. International Economics, 139, 133-151.

[10]   Qiao, Y.D. and Ge, J.F. (2015) RMB’s Entry into SDR Basket: Reassessment. International Economic Review, 5, 5-45.

[11]   Yu, E.F. and Gong, X.G. (2017) On the Inclusion of Chinese RMB in the SDR Basket: from the View of History. International Monetary Review, 1, 104-118.

[12]   Hu, W. and Bai, Q.X. (2016) Research on the Valuation of SDR under the RMB Internationalization. Journal of Hebei University of Economics and Business, 1, 73-79.