China's yuan may get reserve status this year

China's currency may become a global reserve currency this year.

The International Monetary Fund hinted that the promotion could happen when it said this week that it does not consider the yuan undervalued.

The final decision will be taken at an IMF meeting in October.

The move would mean the yuan joins an elite group of currencies including the US dollar, euro, pound and Japanese yen.

Claudio Piron, currency strategist at Bank of America Merrill Lynch, explained to Leisha Chi what the promotion would mean.

BBC News