China's inclusion in the SDR accelerates the pace of internationalization! The Central Bank of the Philippines intends to increase its holdings of RMB assets: On December 1, the International Monetary Fund (IMF) announced that the Renminbi (RMB) will be included in its Special Drawing Rights (SDR) currency basket, with a weighting of 10.92%, ranking behind the US Dollar (41.73%) and the Euro (30.93%), and ahead of the Japanese Yen (8.33%) and the British Pound (8.09%). This decision will take effect on October 1, 2016. With this, the RMB's inclusion in the SDR is officially finalized, marking a milestone and a critical step in its internationalization.
In recent years, the Philippines' economic development has been remarkable. The primary drivers of its rapid economic growth are the sharp increase in domestic and foreign investment. The substantial influx of foreign capital has made the Philippines the second-fastest-growing economy in Asia. China and the Philippines have a long history of economic and trade exchanges, and have consistently maintained a positive momentum in economic and trade cooperation. The Philippines investment immigration program has attracted numerous investors to settle in the country due to its low entry threshold, leading to a rapid increase in the country's foreign exchange deposits. On December 2, the Central Bank of the Philippines considered increasing its holdings of RMB assets.
The Central Bank of the Philippines stated on December 2 that following the International Monetary Fund's (IMF) decision to include the Chinese RMB in its reserve currency basket, the Central Bank is considering increasing its holdings of RMB assets to diversify its foreign exchange reserves.
Central Bank Governor Amando Tetangco Jr. stated that the bank's policymakers are also considering purchasing more RMB-denominated bonds, including longer-term bonds, as they have now become available for purchase.