Tesco
A Middle Ground
Article

A Middle Ground

The Renminbi Is Rising, but Will Not Rule

Eswar Prasad
Finance & Development Magazine, 2017
Read the article

Read or listen offline

自动生成的音频
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
自动生成的音频

Editorial Rating

8

Qualities

  • Analytical
  • Overview

Recommendation

In October 2016, the International Monetary Fund formally designated China’s renminbi as one of the world’s reserve currencies, reflecting China’s standing in the global economy. But Professor Eswar Prasad argues in this well-reasoned analysis that, while the renminbi is gaining significant clout, it is far from becoming a preferred currency in global foreign reserves. Prasad examines a range of issues, including Chinese governance, to explain this dichotomy between economic power and currency status. getAbstract recommends this authoritative report to executives and policy officials interested in the future of the renminbi.

Take-Aways

  • In October 2016, the renminbi joined the US dollar, yen, euro and pound sterling as an “elite global reserve currency” of the International Monetary Fund.
  • International monetary experts are skeptical of a widespread inclusion of the Chinese currency in foreign reserves occurring anytime soon.
  • The overwhelming disconnect between China’s robust economic influence internationally and the renminbi’s position falls mainly on Chinese economic and political leadership.

About the Author

Eswar Prasad is a professor at Cornell University and senior fellow at the Brookings Institution.

Comment on this summary or 开始讨论