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According to a report by Global Times on May 15, the International Monetary Fund conducted another review of the valuation of the Special Drawing Rights after a five-year hiatus. This review was also the first since the RMB became a currency in the Special Drawing Rights basket in October 2016. In this review, the weight of the US dollar was adjusted from 41.73% to 43.38%, an increase of 1.68 percentage points. The weight of the RMB was adjusted from 10.92% to 12.28%, an increase of 1.36 percentage points. The weights of the remaining currencies in the Special Drawing Rights basket, such as the euro, yen, and pound, were reduced to varying degrees.

The increase in the weight of the RMB reflects the increase in China's share in the international export market, foreign exchange reserves, and foreign trade settlement. It is also the inevitable result of China's overall national strength and China's continued stable export supply in the trade shortage caused by the global epidemic. It is not surprising that the International Monetary Fund adjusted the weight of the RMB. However, one point worth noting in the IMF's approach is that the weight of the US dollar increased by 1.68 percentage points, which is 0.32 higher than the 1.36 percentage points of the RMB.

The RMB provides necessities of life for countries around the world based on China's honest commodity labor. It is natural that the RMB is used more widely in the world, but what about the US dollar? The weight of the US dollar has increased and even exceeded that of the RMB in the IMF's five-year valuation review. This does not reflect the decline in the global use of the US dollar and the cumulative decline in the credit of the US dollar. The IMF's actions may be to build momentum for the Fed's interest rate hike.