China frightened markets in August when it moved to devaluate its currency.
The politics around economic and financial reforms looks fraught with difficulties, and more so as China’s structural economic slowdown continues. The devaluation renewed uncertainties about China’s currency policy and the Yuan’s passage into the IMF’s currency basket. What is the current state of economic and currency reforms in China – and what political factors play into it? Should we expect more turbulence ahead?
Miriam Campanella and Guy de Jonquières are both Senior Fellows at ECIPE