China’s Currency Is Rebalancing

Americans have been yacking at each other about the US-China exchange rate for so long, that sometimes we forget that things change even without dramatic occurrences in American politics. For example, China’s trade surplus is shrinking and “after adjusting for inflation, the renminbi appreciated 12 percent against the dollar in the last 18 months.”

To the best of my knowledge, the Treasury Department continues to work on this more-or-less behind the scenes, but the bottom line is that events are moving in the direction the U.S. favors so there simply isn’t a ton to be done at this point.