USD-CNY to hold steady at 6.2095

China wants its currency to be included in the special drawing rights basket.

There were reports suggesting that the IMF has raised concerns about the financial markets' accessibility to foreign investors prior to the stock market sell down in late June. This comes ahead of IMF's review of its SDR basket every five years, which China is pushing for the CNY inclusion. The upcoming review is expected to be completed sometime between October and November, says Commerzbank.

As such, the pace of capital account liberalization could be a key determinant in the IMF's final decision. The IMF had earlier noted that the CNY has to be "freely usable", which entails for it to be widely used and widely traded. 

"On this front, we could see China stepping up with reforms to loosen quota and lock-up periods for capital account transactions. The pace which China loosens its guidance in rate settings and the developments in the Free Trade Zones will also lend important support in the CNY push. For USD-CNY, it continues to hold steady around 6.2095", according to Commerzbank.