Yuan’s journey from the elite reserve foreign money membership to world foreign money

AMONG the elites, having a membership with a prestigious membership signifies one’s superiority by way of his or her social standing. Apparently, an analogous membership exists for foreign currency.

Out of the 180 currencies recognised by the United Nations member states as authorized tender, solely a handful have made it to the Particular Drawing Rights (SDR) membership of elite currencies. The SDR, launched in 1969 by the Worldwide Financial Fund (IMF), serves as a global reserve asset to supply liquidity to the worldwide financial system which central banks worldwide might use like an overdraft account as and when the necessity arises.