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RMB internationalisation like coloured beads for the IMF

223Geraci believes that the entrance of the RMB to the SDR basket does not basically make any practical difference in the world of international finance. The SDR only represents 300 bn dollars, and it is very little compared to the value of currency trading in one day, which exceeds 5 trillion US dollar. The RMB is about 10% of the basket, so an even more negligible amount. And, by the way, no one really uses SDR, anyway. The degree of internationalization on RMB seems to improve only when China is in the process of negotiating agreements with international organizations. Once an agreement has been reached, the RMB seems to be going back to sleep, ready to rise again when needed.

 

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