China Free Market Currency Convertibility Issue In SDR Deliberations

As China’s currency, the renminbi, appears to coming ever closer to acceptance in the International Monetary Fund’s elite Special Drawing Rights currency basket, a Goldman Sachs report provides a basic definition of the issue and then points to mechanics driving successful admission into the reserve currency club. But a contentious political point regarding currency manipulation, mentioned last night in the GOP debate, might come front and center to cause questioning of China’s assent into the currency basket.   Elite IMF SDR currency basket currently has four members in club The Goldman Sachs Q&A-style report, written by researchers MK Tang, Yu…