The IMF's decision to include the Renminbi into the SDR is a major push for the RMB to become one of the world's major reserve currencies. It also accelerates the opening up of China's capital account and signals a significant market opportunity for RMB-denominated assets in the coming years. Central banks will increasingly use the RMB for their foreign reserve investments while global investors will allocate more and more to RMB-denominated investments. The longer term implication on the currency front is the tremendous scope for the RMB's long-term appreciation.
In October 2015, the PBOC started issuing bills in London's interbank market. Moving forward, I believe this will be done on a regular basis. It is highly likely that the MOF will also begin issuing bonds there regularly. With this, you get the money market curve and the entire bond yield curve into international markets. The London market will become the global benchmark for both Chinese issuers outside of China and international issuers tapping into the RMB bond market. In a way, it's like creating the euro yuan market for China.
Since 2010, China has been pursuing its strategic goal of making the RMB a global reserve currency via its influence on various multi-lateral platforms. Chinese authorities have asserted their financial power in the global market with the newly created Asia Infrastructure Investment Bank, the BRICS Bank and the Silkroad infrastructure fund. I believe that the IMF's decision will be a major boost in China realising its long-term strategic goal.