IMF believes yuan should be given a greater role in world monetary system

Dominique Strauss-Kahn, a head of the International Monetary Fund, made comments this week on the world currency reform saying that Chinese yuan should be given a greater role within the restructured monetary system.

Speaking at the IMF’s headquarters Strauss-Kahn noted that adding emerging market countries' currencies such as the yuan to a basket of currencies that the IMF administers would benefit the global system and create more stability.

Besides, he warned that nations could face another financial crisis without adjustments to the global monetary system pointing to widening economic imbalances, large and volatile capital flows, exchange rate pressures and rapidly growing excess reserves.

Strauss-Kahn's remarks about the yuan do not mark a policy shift for the IMF, which has always urged more participation by China in the world economy, but it does expand on its stance.