Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

The correct answer is D. The Renminbi (Chinese yuan) was approved by the IMF Executive Board in November 2015 and joined the SDR basket on 1 October 2016, alongside the US dollar, euro, yen and pound sterling. The IMF tests a currency on two counts: its issuer must be a major exporter, and the currency must be freely usable, meaning widely used in international payments and held in reserves. China met both after its reforms to market liquidity and currency management.

Why the others fail:

• Rouble: Russia's currency has never been part of the basket and does not meet the freely usable test.
• Rand: South Africa's currency has limited international use and is not in the basket.
• Indian Rupee: The rupee is not fully convertible on the capital account, so it is not freely usable and is not in the basket.

Concept: the SDR is an IMF reserve asset whose value rests on a basket of currencies, and the basket is reviewed every five years. Mains angle: the Renminbi's entry marks China's growing role in global finance and feeds the debate on reforming the dollar-centred international monetary system.

Trap: candidates think a large economy or a BRICS membership qualifies a currency. The IMF test is about being freely usable, not about GDP size.