China to Let Currency Rise

China plans to revise its currency policies within a few days, producing an instant rise in the yuan against the dollar, and allowing greater fluctuation in the future, sources tell the New York Times. China’s Commerce Ministry has vigorously opposed such a move, but it appears to have lost the argument to China’s central bank and other interest groups, which have argued that China is too dependent on the dollar.

They’ve also argued that their monetary policy has invited hostility from the rest of the world, and the decision comes directly after a visit from Timothy Geithner. Barring some last-minute hiccup, China will likely allow a quick, overnight rise in the yuan, then allow it to trade in a greater range, much as it did in 2005. This time, it’ll also stress that the currency can depreciate, too, to fend off speculators. (More yuan stories.)