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Germany Supports Bigger IMF Currency Basket

Germany’s deputy finance minister Jorg Asmussen backed calls by France, China and Brazil to widen the pool of currencies behind the International Monetary Fund’s special drawing rights.

Germany’s deputy finance minister Jorg Asmussen backed calls by France, China and Brazil to widen the pool of currencies behind the International Monetary Fund’s (IMF) special drawing rights (SDRs), Financial Times reports. He added that clearer membership criteria will increase the incentives for emerging market countries to promote greater internationalization of their currency.

The IMF holds SDRs, supported by the dollar, euro, yen and pound, as its reserve currency. Asmussen said that broadening the SDR currency constituency may convert an accounting unit to a global reserve currency, such as the dollar and euro, easing world trade and adding to the stability of the global financial system.

Click here for the story from Financial Times.

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