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IMF Asia head says yuan's adoption could intensify China spillovers

Changyong Rhee, director of the International Monetary Fund’s Asia and Pacific Department, said that already larger-than-expected spillovers from China into regional economies could be exacerbated if the fund decides to include the yuan in its benchmark currency basket, Reuters reported. “It’s hard to know how fast it’s going to happen but renminbi inclusion in the SDR basket can have an impact on Asian financial … dynamics,” Rhee said at an event at the Carnegie Endowment for International Peace. IMF staff calculations showed a 1% growth shock from China could take more than 0.3 percentage point from overall Asian growth.

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