APEC countries call for a rise in the yuan

Pacific finance ministers have called for currency flexibility in a draft of their concluding statement to the Asian-Pacific Economic Cooperation (APEC) group, putting China under pressure to re-value the yuan, the Wall Street Journal reported. Meanwhile, US Treasury Secretary Timothy Geithner of the US – also a member of APEC – reiterated the importance of a strong US dollar, even as it continued to fall to a 15-month low against a number of foreign currencies. In a rare change of official rhetoric, the People’s Bank of China (PBOC) said in a statement that it will take into account "changes in international capital flows and the trends of major currencies" in determing an exchange-rate policy. The International Monetary Fund considers the yuan "significantly undervalued." It is not yet clear if the change in official language will lead to a real change in policy, though leaders feel it is unlikely the sensitive currency issue can be resolved publicly in an APEC forum.