Why is China most likely considering a greater reliance on the SDR?
A) gains in the foreign exchange market
B) concerns about the value of the U.S. dollars
C) demands to replace the dollar with the euro for reserves
D) requirements by the IMF to make China's currency more flexible

Question

Quizplus · Accepted Answer

China has expressed concerns about the value of the US dollar, which is currently the dominant reserve currency. By relying more on the SDR (Special Drawing Rights), which is a basket of currencies that includes the US dollar, euro, Japanese yen, British pound, and Chinese yuan, China could potentially diversify its reserves and reduce its exposure to the fluctuations of a single currency.

Why Is China Most Likely Considering a Greater Reliance on the SDR