Financial Times says the yuan’s inclusion into the SDR basket is an important event in international finance. It shows that the yuan’s influence is beyond Chinese territory, and one step closer to becoming a reserve currency. It would bring about major impacts to the global currency market and capital flows.
Bloomberg says joining SDR is not a technical adjustment, but a milestone for the world economy. The decision would speed up China’s reform and bring benefits to China’s trading partners. In the short term, the move would not have a direct influence on the renminbi. In the long run, however, it would raise yuan’s status.
Rating agencies say the decision would have long-term positive effects for Chinese corporates with lower costs of currency exchange costs. It will strengthen transparency and legal protection issues. For the domestic market, more international investors would purchase yuan debt, and onshore yuan securities might be included in international indices.