China has set the renminbi-dollar exchange rate at its highest level in five years, after announcing it would make its currency more flexible.
The exchange rate is now 6.7975 renminbi to one US dollar, the highest level since July 2005. US Treasury Secretary Timothy Geithner has previously criticised China for refusing to remove its peg to the dollar and allow the renminbi to appreciate. The US has accused Chinese officials of being "currency manipulators" and keeping the renminbi artificially low to benefit exports. The Obama administration has been ramping up the pressure on China to unpeg its currency for some time. When China said it would allow greater flexibility in the renminbi earlier this month, President Obama welc...
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