
China's yuan has become the first SDR basket currency to belong to a country that is not a clear U.S. ally, ushering in a new economic order.
It may not be the top subject of discussion around the average family dinner table, but China's Nov. 30 entry into the International Monetary Fund's Special Drawing Rights (SDR) currency basket marks the start of a new era in the global economic structure. The accession will not immediately bring about seismic changes in the yuan's usage, rocketing it up to international reserve currency status in one glorious surge. That kind of usage growth, if indeed it ever does happen, will take years to come about. The more immediate change is actually subtler and has more to do with what China is — or more specifically, what it is not. The yuan has become the first SDR basket currency to belong to a country that is not a clear U.S. ally — the other slots are filled by Japan, the United Kingdom and the eurozone.