Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

The Rising Yuan China's Currency Gets a Global Upgrade

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

The Rising Yuan China's Currency Gets a Global Upgrade

Article excerpt

The International Monetary Fund's decision Monday to add the yuan to the dollar, euro, yen and pound as a reserve currency was acknowledgment of China's progress toward superpower status.

At the same time the designation, effective next September, will impose limits on the Communist Chinese government's economic and political maneuverability. For the world, the change should be seen as positive, although with costs and benefits.

The IMF is only being realistic in its designation, given China's status already as an important world trader. By accepting its currency as"freely usable," the IMF is catching up on an evolving reality. The designation means, for example, that the yuan can be used in the disbursement and repayment of international bailouts, such as the Greek rescue.

Also on the international benefit side, but on the debit side for the Beijing government, China will find it more difficult to fiddle with the yuan's exchange, an action it has taken sometimes to improve the position of its exports on world markets. …

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