China 's Special Drawing Rights Essay

767 Words Nov 10th, 2016 4 Pages
By the people’s Bank of China. The Chinese government wants their economy to be better and faster, but this belief is said to be part of the “Special Drawing Rights” (Pettis). China needs to in the country of China, the Chinese are determined to access “Special Drawing Rights” because they want to introduce the yuan into their economy. China uses dollars in their economy; however, the value of the dollar has dropped from 70 to 60 percent in the last fifteen years. The governor of the people’s Bank of China known as “Zhou Xiaochuan” called it a transformation in the global reserve system (Rodriguez). Li Keqiang, the prime minister asked to incorporate the yuan into the Special Drawing Rights. The Special Drawing Rights are international reserve assets. SDR was created by the International Monetary Fund, to complement the reserves of central banks and follow the system of fixed parties. The yuan would best replace the dollar, so China’s economy would be more stable and trustworthy. Since the leaders of the communist party, don’t believe that within the IMF; the people of China deserves an extensive share in help making decisions within the IMF; the residents of China distinctively are capable of decision-making. Therefore, the people of China too have equality as the rest of the important majesties of China. There are two criteria that still need to decide to approve the currency to be incorporated into the SDR. Additionally, there are some reasons why China wouldn’t qualify…

Related Documents