Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Tuesday, November 29, 2005

Now It's Official

China did not manipulate its currency. Who says? The US Treasury, and they can't be wrong, can they?

"The Treasury, in a semi-annual report required by Congress, said that while China’s rigid exchange rate continued to create distortions and risks in the global economy, Beijing had taken important steps towards introducing flexibility."

“The initial steps by China to increase exchange rate flexibility played an important part in this decision,” said John Snow, Treasury secretary, noting in particular China’s formal abandonment on July 21 of its peg to the US dollar. But he added: “It is imperative that China move towards greater flexibility as quickly as possible.