The International Monetary Fund on Monday designated the Chinese renminbi as one of the world’s elite currencies, a major milestone that underscores the country’s rising financial and economic heft.
The decision will help pave the way for broader use of the renminbi in trade and finance, securing China’s standing as a global economic power. Just four other currencies — the dollar, the euro, the pound and the yen — have the I.M.F. designation.
But joining this group also introduces new uncertainty into China’s economy and financial system, at a time when the country’s growth is already slowing. To meet the I.M.F. requirement, China was forced to give up some of its tight control over the currency, which could inject fresh volatility into the economy.
The I.M.F. designation, an accounting unit known as the special drawing rights, bestows global importance.