Recently, which one of the following currencies has been proposed to b

Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

Rouble
Rand
Indian Rupee
Renminbi
This question was previously asked in
UPSC IAS – 2016
The correct answer is D) Renminbi. The Chinese currency, Renminbi (Yuan), was proposed and subsequently added to the basket of the IMF’s Special Drawing Right (SDR).
– The SDR is an international reserve asset created by the IMF to supplement the official reserves of member countries.
– The value of the SDR is based on a basket of key international currencies. Prior to 2016, the basket consisted of the US dollar, Euro, Japanese Yen, and British Pound.
– In 2015, the IMF’s Executive Board decided to include the Chinese Renminbi (RMB) in the SDR basket, effective October 1, 2016.
The inclusion of the Renminbi reflected its increased role in international trade and finance. The composition and weighting of the SDR basket are reviewed periodically by the IMF.
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