Rupee could be part of SDR in next 10-15 years: Montek
Planning panel deputy chairman Montek Singh Ahluwalia today said there is a possibility of the rupee entering the group of elite currencies like the US dollar and British pound, which constitute IMF's Special Drawing Rights, in the next 10 to 15 years.business Updated: Sep 13, 2011 21:50 IST
Planning panel deputy chairman Montek Singh Ahluwalia on Tuesday said there is a possibility of the rupee entering the group of elite currencies like the US dollar and British pound, which constitute IMF's Special Drawing Rights, in the next 10 to 15 years.
"If our growth process continues (in the next 10 to 15 years)...the next currency to be included (in the basket of Special Drawing Rights) should be rupee," Ahluwalia told reporters on the sidelines of a conference on Global Cooperation for Sustainable Growth and Development here.
The basket of currencies that determine the value of Special Drawing Rights (SDR), include US dollar, the British pound, Japanese yen and euro.
Ahluwalia said the dominance of dollar will come down in the next two decades with other currencies like euro and Chinese renminbi gaining ground.
"Over a period of two decades, thed US dollar will not be so dominant and euro will be more popular, so renminbi will be", he added.
With Chinese economic growth gaining in strength, renminbi could also be included in the basket of currencies comprising SDRs, he said.
SDR, which was created by the IMF in 1969 as the international reserve asset, serves as the unit of account of the Fund. Its value, which is based on a basket of key international currencies, is announced daily by the IMF.