The Executive Board of the International Monetary Fund (IMF) is to meet later this month to discuss the addition of the Chinese yuan to the body's Special Drawing Rights (SDR) basket of reserve currencies.
Should the yuan be approved, it will take its place alongside the US dollar, the euro, British pound sterling and the Japanese yen. The yuan's inclusion in this prestigious group would help to raise the profile of the currency and highlight its growing importance to global financial markets.
China has been a manufacturing powerhouse for many years, but the emergence of the Asian nation as the world's second-largest economy now means that the yuan is playing an increasingly crucial role in global market stability.
An IMF spokesperson told Reuters: "As we said before, the IMF Executive Board is expected to meet in November to consider the review of the SDR currency basket. The exact board meeting date will be communicated once it has been set."
In its latest full trading session, China's Shanghai Composite Index (SECC) delivered an outstanding performance on Wednesday (4 November 2015) following weekend comments from president Xi Jinping, which highlighted renewed confidence of a lasting Chinese economic recovery.
It rose by 4.29% during the day's trading to wipe out losses that had been experienced earlier in the week. This was one of the strongest daily increases for the SECC to have been witnessed in recent months.
At the same time, the fact that the SECC remains almost 40% down from its position at the middle of the year continues to be a concern for investors and analysts alike - but it does present plenty of scope for a lasting recovery that could further strengthen the yuan's position in global trading in the weeks and months ahead.