China lobbies US to include yuan in IMF's reserve assets

Premier Li Keqiang urged the US to help make the Chinese currency part of the IMF's reserve assets during talks with visiting US Treasury Secretary Jack Lew on Monday.

Lew's trip, which came just before the deadline today for countries applying for founding membership in the China-led Asian Infrastructure Investment Bank (AIIB), had prompted speculation that Lew might discuss Washington's possible partnership with Beijing in the bank.

But a United States official said Lew made it clear that for now, the US would proceed through partnerships with other institutions. Chinese leaders told Lew they would welcome US membership of the bank, the US official said.

During the meeting, Li called on Washington to expedite its approval of reform proposals at the International Monetary Fund.

"We hope the US side will support the process to add the Chinese yuan to the existing basket of the Special Drawing Rights," Li said, referring to the IMF's "supranational" fund used to supplement members' official holdings. The Special Drawing Rights are derived from a basket of currencies - the US dollar, Japanese yen, euro and pound sterling, at market exchange rates.

Lew said late on Monday night that the US still had concerns over the AIIB. "We very much welcome China's increased participation in infrastructure investment, and the concerns we've raised about the needs for standards continue," Lew said.

"There is enough infrastructure need for new and existing institutions, and more resources on top of that.