The IMF allocates SDR quotas to supplement the reserves of its member countries. IMF added Chinese renminbi, as an international reserve currency beginning in October 2016 (which many believe was premature looking back from now). This due to the fact that transparency and reform are still very much needed in the Chinese financial system. These include Commercial loans shadowed by loans to SOEs and government projects( SOE's borrow at regulated interest rates and can go public bypassing queues, while private firms need to depend on self financing or borrow @ much higher interest rates-case of Alibaba IPO), problems of shadow banking, etc. What about the debt trap that some economists allege say China uses with poorer nations?

Many economists still believe that the RMB is undervalued and also that the Chinese financial sector is still not well regulated. Now the Chinese are able to get more leverage in the international markets and counter the influence of the dollar. It now allows China vote in international monetary decisions of IMF. However on the longer perspective it now depends on how China uses this opportunity and if India may be next in line being the 5th largest economy.?