Renminbi joins IMF basket of reserve currencies

On Monday the IMF voted to make the Chinese Renminbi the 5th addition in its basket of reserve currencies. Hailed as a milestone for both the currency and the Chinese economy, the addition has been seen as a vote of confidence for the PBoC and the reform efforts being implemented. The Renminbi will have the third largest weighting behind the US dollar and the Euro. TAM expect to see some de facto weakening of the European currency as a result, this will largely continue to be a boon to the export led economies within the single currency block.