What is Holding the Yuan Back? Xi is.

What is Holding the Yuan Back? Xi is.

Daniel McDowell

Georgetown Journal of International Affairs, February 2022

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Daniel McDowell

Political Science Department

International Affairs

Georgetown Journal of International Affairs

Daniel McDowell

Daniel McDowell

Daniel McDowell, associate professor of political science, explains why China's currency, the yuan, continues to significantly underperform the dollar as the world's reserve currency. He argues that political concerns are behind the tepid global interest in the yuan as an investment currency. The concentration of power in the hands of Xi Jinping raises investor concerns about future policy unpredictability and Beijing's long-term commitment to financial openness.

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