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14 May 2015
China will apply the IMF standards for calculating financial flows - SAFE
FXStreet (Mumbai) - As Chinese authorities push toward including the yuan into the International Monetary Fund's (IMF) basket of global reserve currencies, they took another step toward their goal and adopted the IMF's standards to calculate its balance of payments data.
The country's currency regulator, the State Administration of Foreign Exchange (SAFE), said this week that China will apply the IMF standards for calculating financial flows in its current account, as well as financial and capital accounts from this year onward.
Following the IMF rules, China will now account for its reserve assets under the financial account, and create a new sub-category to the financial account for non-reserve assets.
Different classifications for some business transactions are also included in recent changes, SAFE said. According to the new accounting standards, China's preliminary current account surplus stood at $78.9 billion in Q1. However, the figure is subject to revisions.
These recent measures follow China's request to include its currency, the yuan, in the IMF's Special Drawing Rights (SDR) basket, which would further increase usage of the yuan in the international payments system and enhance its standing as a potential global reserve currency.
The country's currency regulator, the State Administration of Foreign Exchange (SAFE), said this week that China will apply the IMF standards for calculating financial flows in its current account, as well as financial and capital accounts from this year onward.
Following the IMF rules, China will now account for its reserve assets under the financial account, and create a new sub-category to the financial account for non-reserve assets.
Different classifications for some business transactions are also included in recent changes, SAFE said. According to the new accounting standards, China's preliminary current account surplus stood at $78.9 billion in Q1. However, the figure is subject to revisions.
These recent measures follow China's request to include its currency, the yuan, in the IMF's Special Drawing Rights (SDR) basket, which would further increase usage of the yuan in the international payments system and enhance its standing as a potential global reserve currency.