Amid growing concerns in the United States and Japan about the Chinese yuan's peg to the dollar, visiting U.S. Treasury Secretary John Snow said Monday foreign exchange rates should be determined flexibly by the market.
"My long-held view is that a well-functioning international financial system is one based on flexible exchange rates determined in competitive markets," Snow told reporters at the U.S. Embassy in Tokyo after a series of meetings with Japanese leaders.
Later in the evening, Snow met with Finance Minister Masajuro Shiokawa. The two agreed that China should think about what would be really beneficial to China regarding the yuan and that this message should be conveyed to Beijing.