US sees progress in yuan issue

The Associated Press, citing a US Treasury spokesman, said the Bush administration had made progress in its ongoing talks on resolving currency issues with China. The spokesman said the latest Sino-US exchange, the fourth in a series, "brings us closer" to increasing exchange-rate flexibility but he declined to give a timeline. Beijing has maintained China can make no significant moves until its banking system undergoes reforms enabling it to handle the volatility a more flexible exchange system could generate.