The Renminbi will officially join the International Monetary Fund's basket of reserve currencies on Saturday, taking it a step closer towards the global influence the Chinese government dreams of for the currency. But there are fears that entry into the so-called SDR basket will lead to a swift devaluation of the yuan.

On October 1st, the renminbi officially becomes a member of the world's elite currency club - the IMF's Special Drawing Rights basket. That makes it possible for the IMF's 188 member nations to take out or repay loans in the Chinese currency.

According to the IMF, the Renminbi will gain the third largest portions in the basket -- 10.92 percent, behind the US dollar and the euro.

Some argue that a more internationalized RMB will lead to a fairer valuation of the currency. But there have been worries that it could instead lead to a sudden devaluation.

Societe Generale's director Gu Sairong said:" As a responsible major economy in the world, the Chinese government will not allow a substantial depreciation. I think the government officials are certain about that. Renminbi will not appreciate as it joins the SDR basket. But the control of the Renminbi forex rate will be comparatively weakened, creating more room for shortsellers, which will cause a slight devaluation."

Since the Brexit result came out in June, the Renminbi has continued to weaken against the dollar. The Reminbi's daily midpoint fixing weakened from some 6.5 per dollar to almost some 6.7 per dollar now. But analysts say we are unlikely to see a monetary policy change by the People's Bank of China.

"The change of monetary policies evaluates the domestic economy because monetary policies are used to stablize the commodity prices and to boost the economy. So monetary policies have little to do with foreign exchanges. In other words, I think China will keep its prudent monetary policies to control the asset bubbles and at the same time, to boost the real economy. That will not change."

"The Renminbi's entry into the SDR basket is the culmination of years of efforts by the Chinese government and the central bank as they seek to provide the market an alternative to US dollars. But there is still a long way to go for Renminbi to get a bigger slice of the action." Reporter Chen Tong.