(Refiles to remove superfluous word in paragraph 2) WASHINGTON, Nov 17 (Reuters) - The International Monetary Fund on Wednesday acknowledged China as a powerhouse in global economy but said the Chinese yuan was not used widely enough be to included in the IMF Special Drawing Right.
The IMF on Monday altered the basket of currencies that make up the SDR, but opted not to add the Chinese currency to the mix.
There had been speculation that the IMF might expand the SDR basket of currencies to include the Chinese yuan as part of a five-year review completed on Monday.
Instead, the agency stayed with current basket of four currencies: the U.S. dollar, the Japanese yen, the euro and the British pound.
"Directors noted that although China has become the third-largest exporter of goods and services on a five-year average basis and has taken steps to facilitate international use of its currency, the Chinese renminbi(yuan) does not currently meet the criteria to be a freely usable currency and it would therefore not be included in the SDR basket at this time," the IMF said in a statement.
The IMF board urged that the issue be kept under review in light of China's rising clout in the global economy, the statement said.
China has become the world's second-largest economy, but its currency is not convertible on the capital account and therefore barely used outside China. (Writing by JoAnne Allen; Editing by Tomasz Janowski)