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The article by Zhu Jun, head of international department at the People’s Bank of China, published in the official Shanghai Securities News on Thursday, reflected Beijing’s regained confidence in boosting the global profile of the yuan – a longstanding target that had been put on the back burner since late 2015 when Beijing’s priority shifted to stemming capital outflow and the currency’s depreciation.
Zhu said China should work hard to promote the yuan’s international use partly because that its inclusion in the Special Drawing Rights currency basket of the International Monetary Fund is not permanent, and that the composition of basket will be reviewed in 2020.
“It’s a short time since the yuan was included in the SDR currency basket and it’s still in the start-up phase as a freely usable currency and as an international reserve currency,” Zhu wrote. “The yuan needs many more years of effort to demonstrate its advantage as an international reserve currency.”