People In The Know

After decades of China opening up to the outside world, the country's public has become familiar with numerous acronyms, and SDR is the latest one.A couple of days ago, the International Monetary Fund announced that the Chinese currency the Yuan is eligible to join the Special Drawing Rights, or SDR, basket.Starting from October next year, the Chinese Yuan will take up a 10.92 percent share in the basket, the third largest among the five currencies.The IMF's SDR basket is a type of international reserve asset that IMF members can turn to in times of need. The basket currently consists of the US dollar, the euro, the British Pound and the Japanese Yen.So, what does this change of structure in the SDR basket mean for China and the world? And what is the next step for the internationalization of China's currency? PIK speaks to Victor Gao, Chairman of China energy security Institute, Liu Baocheng, Professor from the Beijing-based University of International Business and Economics, and Michael Pet