US Treasury Secretary John Snow’s latest comment on the exchange rate of the Chinese currency displays a more sensible approach that has been apparent for some time. "I think Beijing continues to review the pace at which they will move
forward. The forward
market indicates some greater flexibility. (But) we haven’t seen
sufficient flexibility in the spot market." A link to the Reuters version of the story is here. It is only a couple of weeks ago that Washington was threatening to have China officially named as a currency manipulator. The Chinese have made it clear they will not be pushed on this. They have their own internal reasons for taking the inevitable revaluation of the RMB slowly. Pushing them is a waste of breath. Unless it is posturing for domestic US political reasons.