Germany to add China's yuan to currency reserves

Germany's central bank says it has decided to add the Chinese currency into its foreign exchange reserves.

The Bundesbank says the decision was made last year after the European Central Bank (ECB) switched 500 million euros worth of its US dollar reserves into the yuan.

Bundesbank officials say the decision to accept the renminbi "reflects the growing role of the Chinese currency in the world financial system."

Meantime, the Bank of France has also confirmed that it is holding the Chinese currency as part of its reserves.

In September 2016, the currency joined the dollar, pound, yen and euro in the IMF's "Special Drawing Rights" reserve currency basket, becoming the first currency to be added to the list since the emergence of the euro in 1999.

With more on this, CRI's Paul James spoke with John Ross, Senior Fellow with Chongyang Institute for Financial Studies at Renmin University.