Wednesday, December 07, 2005

Snow on Yuan

American Treasury Secretary John Snow commented recently that the so-called float that replaced China's peg to the US dollar "has operated with too much rigidity." Some might view that as a reversal of policy considering the Treasury Department chose not to label China as a currency manipulator. Such an interpretation would be inaccurate. Survived SARS has the explanation.

Some commentators may make the argument that these remarks are responses to the fairly extensive criticism Snow received from the recent Treasury report, but I think it's roughly in line with what he's been saying all along. The message doesn't seem to be changing, but the reporting does, largely because of the context and the expectations of each news cycle.