Chinese Yuan was awarded the status of world reserve currency by the International Monetary Fund in 2015. The Chinese currency was also added to the basket of currencies having Special Drawing Rights in 2016, again by IMF. Given the pace of economic growth and development in China, Yuan is expected to replace the hegemony of US dollar in the currency exchange market in the coming decades. Further, China operates on a managed float currency exchange system because of which there is very less volatility in the Chinese Yuan compared to other free float currencies. That way Chinese Yuan is not such a risky currency.