PBOC’s Yi: SDR market lacks liquidity

China’s state run news agency, Xinhua, reported over the weekend, China's central bank (PBOC) vice governor, YI Gang, has called for efforts to promote the liquidity of the global market for Special Drawing Rights (SDR).

Yi noted that the SDR market lacks liquidity, and "hedging and settlement costs are relatively high," so the infrastructure for the market needs improvement

Meanwhile, PBOC Governor Zhou Xiaochuan pointed out in 2009 that SDRs, which have the potential to "act as a super-sovereign reserve currency," should have a greater role in reforming the international monetary system.