When Brazil joins the discussion, then it must be ...

Gradually put in place a managed floating exchange rate system.

Apparently that’s what Chinese President Hu Jintao said in a speech at a BRIC summit last week. Smooth, huh?

It almost sounds as if maybe China wants to loosen the reins on the yuan; but it’s more likely China wants to loosen the pressure of the international collection of hands wringing its neck to let the yuan appreciate.