By: Mahmoud Gamal
UAE-Mubasher: The International Monetary Fund (IMF) has elevated China's yuan into its elite reserve currency basket.
The yuan's inclusion to the IMF list will take effect on 1 October 2016, said market financial analyst Mohammed Al Shammari.
Currently just the US dollar, the euro, the yen and the sterling pound are in the group.
IMF chief Christine Lagarde said it was "an important milestone in the integration of the Chinese economy into the global financial system".
China is the world's second largest economy behind the US and asked for the yuan to become a reserve currency last year.
The continuity of the yuan into elite reserve currency basket is dependent on China’s ongoing financial reforms.
The yuan is expected to rank the third place among three international currencies in the coming years.
The yuan will now make up part of the IMF's Special Drawing Rights (SDR) - an asset created by the IMF which serves almost as a currency.
Translated by: Julian Nabil
