Dow Jones Newswire
February 1, 2011
DAVOS, Switzerland (Dow Jones)–The board of the International Monetary Fund will discuss a possible expansion of the basket of currencies that compose the Special Drawing Right, IMF deputy managing director John Lipsky said Friday.
- A d v e r t i s e m e n t
In an interview on the sidelines of the World Economic Forum, Lipsky said that no concrete proposals had been tabled to expand the SDR, a notional currency that at present has only four constituents: the dollar, the euro, sterling and the yen. But he said that the SDR’s composition is subject to “a regular process of review.”
Talk has revolved recently around the inclusion of the Chinese currency, the renminbi, in the SDR basket, to reflect the increasing weight of China in the world economy.
President Nicolas Sarkozy of France, this year’s chairman of the Group of 20 industrial and developing nations, has in particular called for the move, and Russian President Dmitry Medvedev told the assembled guests in Davos earlier in the week that the currencies of the four largest emerging economies–Brazil, Russia, India and China–should all be included in the SDR basket.