File photo taken on April 6, 2021 shows an exterior view of the International Monetary Fund (IMF) headquarters in Washington, D.C., the United States. (Photo by Ting Shen/Xinhua)

The updated basket implies slightly higher weights for the U.S. dollar and the renminbi and somewhat lower weights for the euro, the Japanese yen and the British pound.

WASHINGTON, May 15 (Xinhua) -- The International Monetary Fund announced Saturday an increase in the weighting of the Chinese renminbi and U.S. dollar in the Special Drawing Rights (SDR) currency basket after completing a quinquennial review.

It marks the first SDR review since the renminbi formally became the fifth currency in the SDR basket in 2016. The review occurred about one year later than originally scheduled due to the COVID-19 pandemic.

The updated basket implies slightly higher weights for the U.S. dollar and the renminbi and somewhat lower weights for the euro, the Japanese yen and the British pound.

The International Monetary Fund raised the U.S. currency's weighting from 41.73 percent to 43.38 percent and the renminbi's weighting from 10.92 percent to 12.28 percent.

Meanwhile, the euro's weighting dropped from 30.93 percent to 29.31 percent. The yen's fell from 8.33 percent to 7.59 percent and the British pound's weighting declined from 8.09 percent to 7.44 percent.

"Directors broadly acknowledged the progress made on financial market reforms in China, while calling for additional efforts to further open and deepen the onshore renminbi market," the statement read.

The updated basket weights will come into effect on Aug. 1, 2022.

The SDR is an international reserve asset created by the International Monetary Fund to supplement the official reserves of its member countries. It can be exchanged among governments for freely usable currencies in times of need.