The world’s favourite scapegoat currency is on the up. China’s renminbi, revalued at Rmb8.11/$1 in July 2005, is now within a whisker of Rmb7/$1. It has strengthened by some 4 per cent against the dollar so far this year following a 7 per cent appreciation in the whole of 2007. Is Beijing relaxing its traditional opposition to a stronger currency?

Not entirely. Measured against nearly any other currency you care to mention, renminbi performance looks feeble. So far this year, it has depreciated by 3 per cent against the euro, the currency of China’s biggest trading partner, and 4.3 per cent versus the yen.