A bank employee counts 100-yuan banknotes at a bank in Hangzhou, east China's Zhejiang province on December 1, 2015. AFP PHOTO
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The International Monetary Fund's decision to add China's yuan to its reserves basket is a triumph for Beijing, but the fund's verdict that the currency met its "freely usable" test will have little financial impact unless Beijing recruits more users.To serve these purposes, there needs to be a much bigger pool of yuan outside China, which requires offshore institutions, and not just in Hong Kong, to buy and hold yuan.Chinese media predicted entry would draw over 1 trillion yuan ($156 billion) of foreign money into China bonds, though both predictions rest on the assumption that more capital account opening is on the way.So on the same morning China was celebrating the yuan joining the dollar, euro, yen and pound in the IMF basket, the People's Bank of China took the time during its morning press conference to repeat that there was no basis for the yuan, already down 3 percent against the dollar so far this year, to decline further.
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