(Adds Lew quotes)
MEXICO CITY, Sept 29 The Chinese Yuan is "quite
a ways" from becoming a global reserve currency despite
inclusion in the International Monetary Fund's currency basket,
and China needs further reform to reach that goal, U.S. Treasury
Secretary Jack Lew said on Thursday.
On Oct. 1, the Yuan, also known as the renminbi, will join
the dollar, euro, yen and British pound in the "special drawing
rights" basket that forms the IMF's unit of account.
While recognizing "enormous" change in China in the last 10
years that had made the currency more open, Lew said the country
still had work to do on economic reform.
"Being part of the SDR basket at the IMF is quite a ways
away from being a global reserve currency," he said in a
conversation with students in Mexico City.
"In my dealings with our counterparts in China, I recognize
that they have laid out a reform program that would get China
where it needs to go, but I pressed them very hard that they
need to implement that program to experience the results," Lew
Asked by a student what impact the inclusion of the Yuan in
the IMF basket would have on the United States, Lew said the
broad use of the U.S. dollar as a world reserve currency was a
singular aspect of the U.S. economy, along with the liquidity
and depth of its treasury markets.
(Reporting by David Lawder and Frank Jack Daniel; Editing by