China is making front page news with a pledge to reform their currency.
Right. The specifics are clearly lacking and worse, China rejects a one time re-evaluation.
The decision to “increase the renminbi’s exchange-rate flexibility” was made after the economy improved, the central bank said in a statement on its website, without indicating a time-frame for the change. It ruled out a one-off revaluation, saying there is no basis for “large-scale appreciation,” and kept the yuan’s 0.5 percent daily trading band unchanged.
“The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability,” the People’s Bank of China said in the statement. “It is desirable to proceed further with reform of the renminbi exchange-rate regime and increase the renminbi exchange-rate flexibility.”
The Renminbi is considered undervalued from 23% to 40%. This appears to be a non-announcement announcement from China before the G-20 meeting in order to get the pressure off for China's currency manipulation.
Just yesterday China claimed their currency manipulation was not up for discussion at the G-20 meeting.
The actual announcement is here. China claims their currency peg helped with the financial crisis. Uh huh. From the press release:
The stability of the RMB exchange rate has played an important role in mitigating the crisis´ impact, contributing significantly to Asian and global recovery, and demonstrating China´s efforts in promoting global rebalancing.
If China is referring to their goal to be the world's largest economy over the United States, then in my opinion, that statement is true.