Testing the Yuan in G20 'Unknown Territory'

(Nanjing) - International talks focusing on the yuan's future concluded in Nanjing on March 31. Billed as the G20 International Currency System High-Level Seminar, the one-day discussion behind closed doors was hosted by France, which currently holds the G20 presidency, and covered plenty of sensitive ground.

The seminar's opening ceremony was presided over by French President Nicolas Sarkozy and Chinese Vice Premier Wang Qishan. In the audience were central bank chiefs and finance ministers from G20 countries, as well as the leaders of international financial institutions.

Discussions and sometimes heated debates focused on how the yuan might qualify for the International Monetary Fund's (IMF) special drawing rights (SDR). The debate boiled down to a key question: Should the yuan be fully convertible and free-floating before it joins the basket?