People’s Bank of China governor Zhou Xiaochuan denied China had a new strategy in setting its exchange rate, Bloomberg reported. "There is no new strategy on the exchange rate … The exchange rate will be determined by market supply and demand against a basket of currencies. It will be kept stable at an appropriate, balanced level." The renminbi has risen 21% against the US dollar since China dropped a fixed exchange rate policy in 2005, but has remained stable since July. A recently published Ministry of Finance report recommended weakening the renminbi to boost employment and maintain economic growth. US Treasury Secretary Timothy Geithner said that the US would consider the global situation in determining whether China is unfairly manipulating its currency.
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