US official urges revaluation

The US Treasury undersecretary met with officials in Beijing to urge China to increase flexibility in its currency regime. Undersecretary John Taylor told his Chinese counterparts that allowing greater flexibility in the renminbi exchange rate would help cool China's overheating economy and reduce inflationary pressures. Chinese officials told Taylor that they planned to change their policy of pegging the renminbi to the US dollar but did not provide a timetable, Taylor said.