In its reviews, the IMF considers the criteria it uses in selecting SDR basket currencies and the initial currency weights used in determining the a mounts (number of units) of each currency in the SDR basket. In October 2016, the Chinese RMB joined the SDR basket and the three-month yield for China Treasury bonds was added to the basket used to set interest rates on SDRs. In the review concluded in 2015, the IMF’s Executive Board decided that the Chinese renminbi (RMB) met the criteria for inclusion in the SDR basket.
The IMF reviews the SDR basket every five years, or earlier if warranted, to ensure that it reflects the relative importance of currencies in the world’s trading and financial systems. The SDR value in terms of the US dollar is determined daily based on the spot exchange rates observed at around noon London time.
