SDR inclusion to help China lure trillion-dollar inflows

China could see inflows to the tune of USD 2-3 trillion into renminbi assets over the medium-to-long term as successful inclusion of the yuan in the International Monetary Fund's (IMF) reserve currency basket sets the stage for further opening of the country's financial markets. Monday's momentous decision will see the Chinese yuan (CNY) hold a 10.9 percent weighting in the Special Drawing Rights (SDR) basket, higher than the yen and sterling's 8 percent but well below the euro's30.9 percent and the greenback's 42.9 percent. 


"This should help underpin China's continuing efforts to internationalize the currency and its capital account-moves which, our research suggests, could lead to inflows of up to USD 3 trillion [into China] over the next few years," said Hayden Briscoe, managing director of Asia Pacific fixed income at asset manager AllianceBernstein (AB), on Tuesday.

For More Information :-intraday stock tips,NSE BSE Tips ,Intraday Tips, Intraday Trading Tips ,Option Trading Tips,Stock Option Tips,Future & Option Tips,option tips