CNY, as well known, is likely to be added the SDR basket to become a reserve currency soon. IMF is to announce on November 30th this year if China has earned the previlege of inclusion to the basket.

The changes to the reserve basket are done rarely, this has been made a major policy focus by China, indicating the significance of it. Also, there is confusion as to what the International monetary fund represents, albeit it is assumed as positive.

"The Chinese authorities know quite well what is desirable, what needs to be changed and improved in the monetary policy and in the financial sector in China," International Monetary Fund Managing Director Christine Lagarde said during a press conference.

Would SDR mean a strong or weak CNY from here to the markets? And would there be a major power shift globally from West to East?

"We argue that SDR entry is unlikely to boost CNY and that challenges remain to it becoming a major reserve currency. Nonetheless, we are gradually heading towards a multiple reserve currency world" says Rabo Bank in a research note.

This might help China in longer term, rather than short or medium term. China can raise loans from IMF easily by being a reserve currency, also external trade might cost lesser to China. This does not necessarily mean CNY strenghtens in near term.