IMF Victory For China

China’s quest to play a larger scaled role in the global economy is being put to action by the renminbi to the list of reserve currencies. This has revealed to China how far the country and their economy has come. However, it still needs to go farther in liberalizing currency and markets. Zhao Xijun said in regards to the IMF decision,

it shows international society’s recognition of China’s economic development, its reform and opening up, especially in the financial field

This move will be effective next October. It also will broaden the use of the renminbi throughout international trade and finance. This will be a step towards globalization of Chinese currency, however Beijing will need to push ahead with financial reforms to keep banks wanting to use their currency. China will also have to work on managing their currency to keep moving forward with this success.