Yuan as a major world currency will make tungsten market relaxed

The International Monetary Found (IMF) Executive Board included the Chinese currency RMB into its Special Drawing Rights (SDR) basket on Nov. 30, and will be take effect on Oct. 1, 2016. The proportion of the SDR basket will be adjusted to USD 41.73%, EUR 30.93%, RMB 10.92%, JPY 8.33% and GBP 8.09%.

This decision is an important milestone in the integration of the Chinese economy into the global financial system, also is a recognition of the progress that the Chinese authorities have made in the past years in the reforming China’s monetary and financial systems, then to accelerate RMB internationalization. It also will push the development of export and import trading and tourism. The benefits to both China and its trading partners as bilateral trades can be transacted without reference to a third-party currency. Related experts predict that the continuous depressed tungsten market would be possible win a relaxation owning to this decision.

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