Despite further signs of a tentative stabilization, the overall picture of the economy remains challenging in Q2 as the downward trend in investment is still intact and bold monetary easing has yet to be fully passed through to the real economy. That said, the decisive action Chinese authorities have taken in recent months and the ample room that they have to manage economic policies will avoid a hard landing. Instead, the government is likely to allow an orderly slowdown of the economy. Meanwhile, on 11 June, the People’s Bank of China (PBOC) unveiled its annual roadmap to push the internationalization of the CNY forward. Against this backdrop, the country and the IMF are conducting a comprehensive assessment of the possibility to include the yuan in the Special Drawing Rights (SDR) basket. The basket composition will be reviewed this year and, if the CNY is included, it will lift the yuan’s profile as a reserve currency.