The International Monetary Fund (IMF) has raised the weighting of the Chinese yuan in the Special Drawing Right (SDR) currency basket, according to a press release on Saturday.

In its latest SDR valuation review completed on Wednesday, the organization raised the yuan's weighting to 12.28 percent from 10.92 percent and the U.S. dollar's weighting from 41.73 percent to 43.38 percent. The other three currencies in the basket, the euro, Japanese yen and British pound, had their weightings reduced.

The SDR is an international reserve asset to supplement the official reserves of the IMF member countries. The update retained the yuan's weighting in the third place in the SDR basket following the U.S. dollar and British pound. 

Taking place about a year later than scheduled, as the Fund prioritized work related to the COVID-19 epidemic, the review on a five-year basis is the first since the yuan joined the currency basket in 2016.

According to the IMF, the change will come into effect on August 1 and the next review is set for 2027.

Addressing the SDR valuation review on Sunday, China's central bank said the country will continue to promote financial market reform and opening up.

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