Top Stories

  • StanChart HK gets greenlight for landmark SDR bond

    Standard Chartered Bank (Hong Kong) has obtained approval from the People’s Bank of China (PBoC) to become the first commercial issuer of bonds denominated in Special Drawing Rights (SDR) in the country’s interbank bond market.

    • 14 Oct 2016
  • SDR reform key to monetary system overhaul

    The entry of the renminbi into the IMF special drawing rights (SDR) on October 1 is stirring up debate for a revised role of the SDR, with some suggesting reform of the currency unit could lead to a more stable international monetary system.

    • 07 Oct 2016
  • China ponders SDR substitution fund

    With the renminbi now officially part of the special drawing rights basket, China is set to push on with its goal of making the SDR a real-world investment and reserve asset. But the obstacles to that plan are daunting.

    • 04 Oct 2016
  • Official institutions readying for SDR launch

    Institutions have spent months preparing for the launch of the new IMF special drawing rights (SDR) basket on October 1 since the decision to include the RMB was made last year. The mechanics include managing divergent onshore and offshore rates, Jukka Pihlman, global head of central banks and sovereign funds, Standard Chartered, and former IMF official, told GlobalRMB.

    • 30 Sep 2016
  • No big bang for RMB in SDR

    In just a few days, the renminbi will be officially included in the International Monetary Fund’s Special Drawing Rights basket — a move widely seen as a validation of the currency’s internationalisation. But the actual impact of the development on fund flows is expected to be limited, market participants told GlobalRMB.

    • 29 Sep 2016

The International Monetary Fund (IMF) completed the latest review of the currencies backing its Special Drawing Rights (SDR) facility and has included the renminbi with a weighting of 10.92%. The Chinese currency joins the dollar, euro, sterling and yen, although the new composition will not go live until October 2016. China is now expected to accelerate its economic reforms.

Click below to access IMF documents on the background to the SDR, its 2010 review in which it discussed reasons for not including the RMB at that time, and its justification for adding the renminbi in the 2015 review.

FAQs on 2015 SDR Review

August 4 2015 IMF update on SDR review

IMF SDR factsheet

SDR review 2010

Criteria for inclusion

FAQs on the SDR




Comment

  • SDR: Stop Delaying Renminbi

    China's currency stands a chance this year of being admitted into the select club of those backing the International Monetary Fund's special drawing rights. But at the moment it is not certain that the RMB will be deemed to have made the grade. It should be.

    • 12 May 2015

FAQs

  • The lowdown: Renminbi and the SDR

    All eyes are on the renminbi this week with the currency set to officially enter the IMF’s special drawing rights (SDR) basket on Saturday. But what does that mean and why should you care? Here’s GlobalRMB’s quick guide to all you need to know.

    • 28 Sep 2016

GlobalRMB poll

In April 2015 we surveyed about 1,000 market participants for their views on 12 key topics for the RMB market, including RMB inclusion in the SDR basket of currencies.

Do you expect the RMB to be included in the IMF's Special Drawing Rights basket in this year's review? 

Yes - 55%. No - 45%.

Whether the renminbi can get into the International Monetary Fund's special drawing rights basket this year is widely seen as the weather vane of the extent of global acceptance of the currency.

Our survey reflects the general expectation: a little better than a 50-50 chance. The main concern is still full convertibility, as well as the smaller usage of RMB as an investment currency compared to the current SDR basket components. But many point out that China’s rapid and continuous capital account liberalisation, coupled with the RMB’s increasing popularity in international transactions, can serve as a strong argument for inclusion this year.

Assuming it is included in 2015, Société Générale recently predicted it would start with a 7% weighting, lower than yen (9.4%) and sterling (11.3%). But analysts at Bank of America Merrill Lynch estimate its potential weighting could be as high as 13%.

GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 China Merchants Securities Co 21.76
2 Agricultural Bank of China (ABC) 15.11
2 CITIC Securities 15.11
4 China CITIC Bank Corp 13.60
5 Industrial and Commercial Bank of China (ICBC) 10.58

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 09-May-18 Daimler Germany 5,000
2 26-Apr-18 Global Logistic Properties via Iowa China Offshore Holdings Hong Kong 1,500
3 26-Apr-18 Trafigura Singapore 500
4 23-Apr-18 CAR Inc Hong Kong 730
5 11-Apr-18 China Jinmao Holdings China 3,000

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 35.60
2 HSBC 15.23
3 Bank of Taiwan 4.86
3 Cathay United Bank 4.86
5 Societe Generale Securities Services 4.21

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 16-May-18 First Abu Dhabi Bank PJSC United Arab Emirates 1,100
2 04-May-18 Busan Bank South Korea 500
3 27-Apr-18 Central American Bank for Economic Integration (CABEI) Honduras 2,000
4 24-Apr-18 CAR Inc China 350
5 19-Apr-18 Shui On Development (Holdco for Shui On Land) China 600