The possibility that the International Monetary Fund (IMF)'s Executive Board makes a positive decision to include Chinese RMB into its special drawing rights (SDR) currency basket on November 30 has surpassed earlier prediction of 80 percent, says the latest report released by Singapore United Overseas Bank (UOB).
The UOB says bringing in the RMB to the SDR currency basket will help it to be more representative and attractive. In the mid- and long-term, a positive decision would benefit the RMB and in the short-term, the boosting effect is unlikely to last long due to a delayed implementation of the policy, the bank says.
The bank predicts that the exchange rate of the U.S. dollar to Chinese RMB would reach 6.40 and 6.45 at the end of 2015 and 2016.
Latest comments