The Chinese yuan became part of the IMF’s Special Drawing Rights basket in 2016.
More precisely, the IMF added the Chinese renminbi—whose principal unit is commonly called the yuan—to the SDR basket effective October 1, 2016. It became the basket’s fifth currency, joining the US dollar, euro, Japanese yen, and British pound sterling.
The decision followed the IMF’s 2015 review of SDR valuation. The renminbi met the export criterion and was judged “freely usable,” meaning it was widely used for international payments and widely traded in major exchange markets. The addition marked a major step in China’s integration into the global financial system and increased the international role of its currency.
An SDR is not a normal currency held by consumers. It is an international reserve asset created by the IMF, and its value is calculated from a basket of currencies. At the 2016 launch, the renminbi received a 10.92% weight. The IMF later retained the renminbi in subsequent basket reviews, although the weights were updated.