CNY's inclusion in SDR, what is in it for global economy?

Will CNY be added to the SDR basket as soon as in IMF's November meeting? A 'yes' would gain China longer term benefits like lowering its borrowing costs from IMF. A 'No' to this question would probably push back its inclusion to 2020, another long wait for the currency.

China's importance in the global trade is well known, it is growing and other central banks also should increase their CNY share in their FX reserves, but so far it is not a widely used reserve currency yet. Even the inclusion of CNY in SDR also means that IMF wants other central banks to increase their CNY in their reserve assets, albeit gradually. 

"World's central banks put together hold USD 11.5trn in their reserve assets, while 93% of the alloted central bank holdings are in the 4 SDR currencies. Also, CNY inclusion in SDR will help global financial communities to weigh on China for liberalising its markets for global players", says Nordea Bank.

However, some economists debate that SDR's role in world's economy is likely limited, they can be held and traded by central banks and very few authorised institutions. they can also be easily replicated by holding 4 constituent currencies.

RMB's inclusion in SDR basket could further increase the flows in RMB-denominated assets, this might also be a potential move towards RMB internationalisation.This will be contributing to the increased usage of the currency as an investment, also as a reserve currency.

RMB might see some appreciation , this might also be an immediate effect, trading in the currency band also might gradually increase. Ahead of inclusion, markets might see lot of positioning being done, especially in bond markets.