RMB's Inclusion Could Spark A Massive Reshuffle

RMB’s Inclusion Could Spark Big Reshuffle by Dan Steinbock THE inclusion of the renminbi in the currency reserve basket is only a matter of time. It could trigger a US$1 trillion re­allocation of global reserve portfolios. Before the summer, investment banks estimated that, in the medium-term, at least US$1 trillion of global reserves could switch into Chinese assets when, and if, the International Monetary Fund endorses the renminbi as a reserve currency. However, a few weeks ago, the IMF recommended a delay of the inclusion. When will the IMF include the yuan in its basket and what will be the…