The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo in this October 10, 2012 file photo. Even as the International Monetary Fund prepares to accept China's yuan in its basket of reserve currencies, a major diplomatic victory for Beijing's campaign to internationalise the currency, foreign companies are growing more sceptical. Thanks to recent reforms in China and the endorsement of key European governments, including Britain during a visit by President Xi Jinping last month, the yuan looks increasingly likely to find its way into the IMF reserve basket, known as Strategic Drawing Rights (SDR). REUTERS/Kim Kyung-Hoon/Files

Offshore yuan sinks to weakest level in two and a half months

The yuan traded at its weakest level in two and a half months in the offshore market on Friday as traders bet on Beijing loosening up on currency intervention once the International Monetary Fund gives its verdict on the yuan’s inclusion in an exclusive basket of currencies.