Snow tells PBOC governor to scrap peg

U.S. Treasury Secretary John Snow told People's Bank of China Governor Zhou Xiaochuan on Friday 26 March that China needs to scrap its dollar-pegged foreign exchange system and float the yuan.

"In the meeting with the central bank governor, Secretary Snow reiterated the U.S. view that the international trading system works best with free trade, free flow of capital and flexible market-based exchange rates," Treasury Department spokesman Robert Nichols told reporters.

Snow also told Zhou that he