The People's Bank of China, the central bank, welcomed on Saturday a statement made by IMF chief Christine Lagarde recommending inclusion of Chinese yuan in Special Drawing Right(SDR) currency basket.

Lagarde said in a statement that the staff experts, in their report to the IMF board, ruled the yuan or renminbi (RMB) now "meets the requirements to be a 'freely usable' currency."

The yuan failed to be included in the SDR in 2010 when the IMF said the currency did not meet the "freely usable" criteria, which was deemed as a key hurdle to the yuan joining the basket.

Seen as the leading currencies of international trade, the SDR basket is currently made up of the dollar, euro, Japanese yen and the British pound.

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