Yuan, Greenspan and China

In Washington, Greenspan and Snow outlined their thoughts on the Chinese Yuan. Both of them spoke of imbalances in the world economy today but warned to refrain from using trade sanctions as may be discussed in the US Senate on a pending bill.

Greenspan also mentioned that a "Plaza Accord-type" agreement may neither be possible nor desirable.

Snow, on the other hand, was also quick to add that while he was still not satisfied with (the speed of) Chinas Forex actions, their banking system and financial institutions were now strong enough to accommodate foreign exchange flexibility and that financial diplomacy has yielded important results.