They're set to vote this year. China has been pushing hard for it. There's a review every 5 years. China was rejected in 2010. If they're rejected again they'll have to wait until 2020. China needs 70% of the vote. The US has 16.75%, Japan has 6.23%, Saudi Arabia has 2.8%, Canada has 2.56%. That still leaves a tiny bit of wiggle room if all these countries vote against China's inclusion. If all the other countries vote how they did in joining the AIIB, China should be in.Currently, only the dollar, euro, pound, and yen are included. The main advantage to getting included in the IMF special drawing rights basket is that all central banks must hold the yuan at a certain percentage, to be decided. This helps internationalize the use of the currency, and would help the yuan market deepen tremendously.Inclusion in the SDR basket is supposed to depend on 1) global exports, and 2) a deep financial market. China is #1 in the first, but lacking in the second. China is making many reforms this year to try to boost the second factor. They've allowed the yuan to freely appreciate, even amidst some pretty atrocious exports. They've also pledged to increase other financial reforms leading up to the vote.Nevertheless, most see the decision as being a geopolitical one. Its a faceoff between the US, who does not want to see the dollar diminished, and China who wants a seat at the table. Many see this step as similar to China's fight to be included in the WTO in 2001, which saw China become much more deeply integrated with the world's economy, and its GDP increase by 10 times its size from 2001 to 2015. China's inclusion in the SDR basket could have a similarly dramatic effect.
China Yuan's being included in the Special Drawing Rights
