China’s Bank Chief Says Currency Is Unlikely to Rise

This article discusses the recent decision by China's central bank governor to freeze the exchange rate of their currency the renminbi. China is not letting the renminbi appreciate against the dollar, in response to the recent financial crisis. The head of the Chinese central bank Zhou Xiochuan said the currency will remain fixed, "as long as major economies remained mired in slow growth." The problem that many western economists and leaders have with this decision by the Chinese financial leaders is the problem this causes for competing economies. President Obama talked about how these artificially low prices of Chinese foreign goods make it impossible for other countries to compete with their exporting. Governor Zhou hinted that they may let the renminbi appreciate against the dollar once the global economy recovery continues, until then competing economies are just going to have to struggle to keep up with the low Chinese exporting prices.