Chinese Renminbi to be Identified in the IMF’s Currency Composition of Foreign Exchange Reserves

IMF News, March 4, 2016

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The International Monetary Fund (IMF) will separately identify the renminbi (RMB) in its official foreign exchange reserves database starting October 1, 2016.
The change will be reflected in the COFER survey for the fourth quarter of 2016 that will be published at the end of March 2017.

COFER (Currency Composition of Official Foreign Exchange Reserves) lists, on a voluntary basis, the currency composition of holdings of foreign exchange reserves across the IMF membership in the form of statistical aggregates.
Separate identification of the RMB implies that IMF member countries will be able to record as official reserves their holdings of RMB−denominated external assets that are readily available for meeting balance of payments financing needs.
The renminbi will join the group of currencies currently identified in the survey: U.S. dollar, Euro, Yen, Pound Sterling, Swiss Franc, Australian Dollar, and Canadian Dollar. All other currencies are listed together.

On February 18, 2016, the Board Paper considered the separate identification of the renminbi in COFER.
On February 26, 2016, the IMF Executive Board agreed to make the change in COFER effective October 1, 2016, providing lead time for COFER survey respondents to adjust to the change.
The fourth-quarter-2016 COFER survey (reference date: end of the fourth quarter of 2016) will be published at the end of March 2017 and will reflect the separate identification.

The separate identification follows the IMF Executive Board’s determination that the RMB is a freely usable currency and the decision to include it in the basket of currencies that make up the Special Drawing Right (SDR), effective October 1, 2016.
COFER is conducted on a quarterly basis and publishes, at the end of every quarter, aggregated data for a reference date of the previous end-quarter.
Participation in COFER by countries is voluntary.
The COFER database distinguishes separately monetary authorities' claims on nonresidents denominated in identified currencies. The claims include banknotes; bank deposits; treasury bills; other short- and long-term government securities; and other claims usable in the event of balance of payments need.

Source: IMF Press Release No. 16/90, March 4, 2016.