In international market standards, SDR currency basket refers to the Special Drawing Rights (SDR) currency basket of the International Monetary Fund (IMF). Usually, SDR refers to Special Drawing Rights (SDR), also known as paper gold, which is a supplementary international reserve asset created, distributed and operated by IMF. It is also the accounting unit of the International Monetary Fund, representing the rights of IMF member countries to use funds.

At present, the international monetary system is centered on the US dollar, and one of the common visions of IMF and Bank of China is to enhance the importance of SDR in the current international monetary system.

The IMF believes that the inclusion of RMB in the SDR currency basket will help improve the status of SDR. Central banks can convert SDR reserve assets into any currency in the currency basket to meet their balance of payments needs.

HSBC said that in view of China's leading position in global trade, some economies may find it a useful choice to settle the balance of payments deficit in RMB. Financial market participants may also rekindle their interest in SDR valuation tools. After all, the ratio of global investors holding insufficient RMB assets is very low, and the new SDR currency basket provides indirect RMB exposure.