Influence of SDR on RMB Internationalization

Abstract

In 2016, IMF officially announced that RMB was included in the currency basket of SDR, with the RMB accounting for 10.92% of the total currencies in SDR ranking the third place. The RMB's accession to the SDR has played a role in promoting the RMB's internationalization status, opening up the international market and making the RMB become an international currency. However, at the same time, it is also necessary to clearly realize that the RMB's accession to the SDR does not have the final word as expected by the international community, and will not really increase the international holdings of RMB, which is, on one hand, restricted by "Triffin Dilemma" and "Mundellian Trilemma", and on the other hand, is as a result of the issue volume of the SDR and the inherent fragility of the real economy, resulting in the actual challenge to the internationalization of RMB. China has a long way to go to promote the internationalization of RMB, and there is still more work to be done.