Chinese Yuan Could Give the IMF "a Shock It Isn't Prepared For"

On Monday, the Chinese yuan joined one of the most elite clubs on the planet: the International Monetary Fund's Special Drawing Rights basket of reserve currencies. IMF Managing Director Christine Lagarde said the yuan's inclusion was based on a clear indication of the reforms China has carried out. Of course, the IMF could be dead wrong. From a practical position, the IMF expects China will have to make its currency more freely tradable than it is - which, along with being a major exporter, is the other criteria the IMF considers in conferring reserve status on a currency, Money Morning Capital Wave Strategist Shah Gilani said on Monday. But there's a possibility the IMF jumped the gun on this. Dark horizons lay ahead if the Chinese yuan isn't stable enough to deserve its new global reserve status... Tags: china yuan , China's yuan , Chinese Yuan , Chinese yuan reserve currency , IMF yuan decision , IMF yuan global currency , IMF yuan reserve currency , what happens if the yuan becomes a reserve currency , yuan crisis , yuan world reserve currency To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Chinese Yuan Could Give the IMF "a Shock It Isn't Prepared For" appeared first on Money Morning - We Make Investing Profitable .