China Opens FX Market Ahead of SDR Decision

The first batch of foreign central banks, sovereign wealth funds and international financial institutions have been registered to enter China’s interbank foreign exchange market, the country’s central bank said on Wednesday.

This registration comes ahead of a highly-anticipated announcement by the International Monetary Fund on Monday that China’s yuan may join its foreign exchange basket.
That would place the yuan on par with the U.S. dollar , Japanese yen, British pound and euro in the exclusive Special Drawing Rights (SDR) basket.

The seven institutions that have been registered include three central banks: Hong Kong Monetary Authority, Reserve Bank of Australia, and National Bank of Hungary, the People’s Bank of China said in a statement on its website.

The International Bank for Reconstruction and Development, International Development Association, Trust Funds of World Bank Group, and Government of Singapore Investment Corp, are the other four institutions to be admitted to the domestic market.

via CNBC

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