Abstract:

On November 30th 2015, the IMF declared that RMB officially joined the SDR basket of currencies, positively affirming that RMB is in line with “freely usable currency” standard(FU). Judging from the three assessment standards of the IMF about SDR in different periods, we can see that the joining of RMB shows the adjustments to past standards with respect to “freely usable currency”. In this process, both China and the IMF have made efforts, which has enriched relevant international law practice. After RMB joined the basket, the RMB exchange rate marketization accelerates accordingly. While the IMF might put forward new requirements for relevant exchange rate reform to China, and even Europe and the United States proposed to sign the “New Plaza Accord” with China. In this regard, China should adhere to corresponding improvement and space in the exchange rate sovereignty under the framework of international law, and meanwhile guarantee the two way legal counterbalance driven by the external exchange rate stability and market oriented reform.