Chinese Yuan Will Be Legitimate IMF Currency in 2016

China being finally in IMF currency doesn’t much surprise me, actually Its strange that Yuan didn’t join the “club of four”, becoming “five”, before. China is one of the strongest nations at the moment, and doesn’t face any kind economy or currency crisis like it is in United States or a little bit better rival, the Europe. They would join the IMF many years before, but the negotiation always failed, because China insisted on keeping the yuan artificially down so the domestic export goes up. They have done it many times, devalued the yuan. I don’t think that this is really nice from Chinese government, majority of people would really appreciate higher wages.

Considering the yuan as a reserve currency will give a go to central banks to buy more of the Chinese currency, and boost investment in the Chinese stock market. According to Standard Chartered bank, within five years market players will invest at least $1 trillion in Chinese assets.

China will finally join the global superpower club.
daily wealth
Today, China’s currency, the yuan, will likely be allowed to join the big four currencies – the U.S. dollar, the euro, the Japanese yen, and the British pound – as the fifth member of the International Monetary Fund’s currency (the Special Drawing Rights, or “SDR”).

Specifically, earlier this month, the head of the International Monetary Fund (“IMF”), Christine Lagarde, said:

“The IMF staff assesses that [China’s currency] meets the requirements to be… [included] in the SDR basket as a fifth currency, along with the British pound, euro, Japanese yen, and the U.S. dollar.”

Here’s the timeline for all of this…

The IMF will OFFICIALLY announce if the yuan gets to join its SDR reverse currency basket today. If the yuan gets approved, China will “join the club” on October 1, 2016.

The thing is, it’s already a foregone conclusion…

There’s no need to wait to hear the answer. You see, any country protesting the inclusion of the yuan would look like an idiot at this point.

So what does this mean? In short, it’s a vote of confidence in China’s drastic reforms by the world’s major powers.

This move is largely symbolic (as none of us actually use the IMF’s currency). What it means is far more important in the long run… It means that China’s currency “passes the test.” China’s currency is finally considered to be as legit as the other four, in the eyes of the world’s superpowers.

Most folks are blowing off the significance of this. I think that’s a mistake

After today, hundreds of billions of dollars will likely flow into China’s currency in the coming years, and from a variety of sources… As a reserve currency for central banks… as a way for investors to diversify outside of the U.S. dollar… as a speculation… as a medium of exchange in global trade… etc., etc.

The era of China’s yuan as a legitimate currency starts today. (You can check www.IMF.org to be sure it happened.)

My humble suggestion is, get your money there first…

Tomorrow, I’ll show you what’s going on in China’s stock market… And why it gives us an incredible investment opportunity right now.

Good investing,

From Steve Sjuggerud’s Daily Wealth, http://www.dailywealth.com/

Also recommended: How to save and invest money

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