CORRECTED-INSIGHT-China knocking on door of IMF's major league, US wavers

Thu Apr 2, 2015 7:27am EDT
 
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(Corrects paragraph 18, changing to Asian Development Bank)

* Europeans aiming for yuan entry into SDR this year -sources

* China would be first emerging nation to join IMF currency basket

* U.S. and Japan more hesitant

* Keen to avoid AIIB re-run, U.S. stresses conditions, not timing

By Paul Taylor

BRUSSELS, April 2 (Reuters) - China is closer to joining the major league of reserve currencies with a deal possible later this year to include the yuan in the International Monetary Fund's unit of account, international finance officials say.

However the United States, where China's growing economic and political muscle is a source of strategic concern in Congress, is reluctant to add the yuan so soon to the basket of currencies that make up the IMF's Special Drawing Rights.

U.S. Treasury Secretary Jack Lew said after a visit to Beijing this week the yuan was not yet ready to join the virtual currency that defines the value of the IMF's reserves, used for lending to countries in financial difficulty.   Continued...