The IMF will add the yuan to its basket of reserve currencies, an international stamp of approval of the strides China has made integrating into a global economic system dominated for decades by the U.S., Europe, and Japan.

The International Monetary Fund's (IMF's) executive board, which represents the fund's 188 member nations, decided the yuan meets the standard of being "freely usable" and will join the dollar, euro, pound, and yen in its Special Drawing Rights (SDR) basket, the organization said Monday in a statement. Approval was expected after IMF Managing Director Christine Lagarde announced Nov. 13 that her staff recommended inclusion, a position she supported.

It's the first change in the SDR's currency composition since 1999, when the euro replaced the deutsche mark and French franc. It's also a milestone in a decades-long ascent toward international credibility for the yuan, which was created after World War II and for years could be used only domestically in the Communist-controlled nation. The IMF reviews the composition of the basket every five years and rejected the yuan during the last review, in 2010, saying it didn't meet the necessary criteria.