China's RMB has been approved to be included in SDR by the IMF executive Board, with effect from October 1, 2016. the weightage of RMB in the basket would be 10.9%, preliminary expectations were 14-6% in August.

This inclusion is a milestone event for China, indicating RMB's significance in the world's economy. Turning out into a "freely usable" currency helps in increasing the international usage  of the currency and encourages its convertibility and capital account liberalization.

"Having said that, we expect the direct impact on RMB and FX flows to be limited. Over the long term, it should help increase demand for RMB assets, if China continues to deepen its domestic bond market and continues its financial market reforms including capital account liberalization", says Bank of America in a research note. 

In order to control capital flight risks over coming months, amidst a weak economic backdrop, the PBoC will likely continue to carefully manage RMB expectations and keep its macro prudential measures to fight against possible speculative outflows.