President Barack Obama welcomed China's announcement Saturday that it will allow a more flexible exchange rate for its currency

BEIJING  President Barack Obama welcomed China’s announcement Saturday that it will allow a more flexible exchange rate for its currency, saying it would help protect the economic recovery.The announcement by China’s central bank suggested a possible break from the yuan’s two-year peg to the U.S. dollar – a source of friction between the two countries – but ruled out any large-scale appreciation.The People’s Bank of China mentioned no specific policy changes, though markets will be watched closely Monday for the announcement’s effects. Chinese officials have said all along that reforms of the yuan, also known as the renminbi, or “people’s money,” will be gradual.”It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility,” the central bank said in a statement posted on its website.

The announcement, timed just before President Hu Jintao’s trip to the G-20 summit in Toronto, Canada, follows warnings from Beijing earlier this week against making its currency policies a main focus of the meeting.Beijing kept the yuan frozen against the dollar to help Chinese manufacturers compete amid weak global demand. It faces pressure from the United States and other trading partners who contend the yuan is undervalued.

“China’s decision to increase the flexibility of its exchange rate is a constructive step that can help safeguard the recovery and contribute to a more balanced global economy,” Obama said in a statement.U.S. Treasury Secretary Timothy Geithner called the move an “important step.””But the test will be how far and how fast they let the currency appreciate,” he said.The European Commission also welcomed the decision, saying it would help achieve more sustainable global economic growth, reduce trade imbalances and strengthen the stability of the international financial system.

But the announcement is unlikely to satisfy critics in the U.S. Congress, who argue that an undervalued Chinese currency gives China’s exporters an unfair advantage, costing millions of American jobs.”This vague and limited statement of intentions is China’s typical response to pressure,” Sen. Charles Schumer, a New York Democrat, said in a statement. “Until there is more specific information about how quickly it will let its currency appreciate and by how much, we can have no good feeling that the Chinese will start playing by the rules.”

Signs that a global economic recovery has taken hold have prompted speculation that China would begin letting the yuan resume a gradual appreciation against the U.S. dollar that began in 2005 but was halted abruptly in 2008 as the global financial crisis took effect.Since then, the yuan’s value has remained at roughly 6.83 to $1, although it is formally pegged to a basket of currencies that includes the U.S. dollar.

“It definitely sounds significant. They’re saying they’re going to press forward,” Stephen Green, an economist at Standard Chartered Bank in Shanghai, said of Saturday’s statement.”We didn’t ever think they were going to do a big one-off, so it looks like that’s not going to happen,” he said. “We’re going to see more movement around a basically stable exchange rate until the global economy is basically healthier. The proof will be in the pudding on Monday.”

Chinese officials have warned that any adjustment to the exchange rate is not other countries’ concern.The director of the international department of the People’s Bank of China, Zhang Tao, told a news conference Friday that Chinese leaders will not discuss the yuan at the G-20 summit.

Saturday’s statement pointed to economic growth both inside and outside China as a reason for the increase in exchange rate flexibility.”The global economy is gradually recovering. The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability,” the central bank said.However, it indicated no major policy changes, adding: “The exchange rate floating bands will remain the same as previously announced in the interbank foreign exchange market.”(AP)

Az immigration law, New push for reform

WASHINGTON – As hopes for Republican support fade, Senate Democratic leaders on Thursday unveiled a push for comprehensive immigration reform aimed in part at stopping Arizona’s tough immigration-enforcement law from spreading to other states.”Democrats and Republicans agree on one thing: The immigration system is broken and needs to be fixed,” Senate Majority Leader Harry Reid, D-Nev., said at a Capitol Hill news conference. “We are offering this framework as an invitation to our Republican colleagues: Work with us to solve this problem that has plagued us for far too long.”But that invitation was met with skepticism by some key Republicans, including Sen. Lindsey Graham, R-S.C., who this week abandoned efforts to work with Sen. Charles Schumer, D-N.Y., on a bipartisan bill. He was the only Republican working on the bill.

When it was clear that Graham was out, Democrats moved ahead with their own proposal, in part to respond to calls for action by Hispanic rights groups. Hispanic voters, who helped propel Barack Obama into the White House in 2008 after he pledged to make immigration reform a priority, make up an important part of Democrats’ political base.

But it is unclear whether the president will throw his weight behind the latest proposal, which would require that border security be significantly tightened before the government could offer a path to citizenship to the estimated 11 million immigrants in the country illegally.On Wednesday, Obama said Congress may lack the “appetite” to take on immigration during an election year in which Democrats are expected to lose seats in the House and Senate. But in a statement Thursday, Obama praised the proposal.

“The next critical step is to iron out the details of a bill,” he said. “We welcome that discussion, and my administration will play an active role in engaging partners on both sides of the aisle to work toward a bipartisan solution that is based on the fundamental concept of accountability that the American people expect and deserve.”

Rodolfo Espino, an assistant professor of political science at Arizona State University, said the mixed messages could simply be the result of Obama not wanting to raise expectations too high.Espino warned that Congress’ window of opportunity to act on the hot-button topic is shrinking fast.”If you push this too close to primary- and general-election dates, I just don’t see something very good coming out with respect to a wise immigration-reform policy,” he said. “As you start pushing closer and closer to that Tuesday in November, you’re going to have some Democrats, particularly some of your moderate, vulnerable Democrats, who are going to start waffling a bit more.”

In a joint statement, Graham and Sen. Jon Kyl, R-Ariz., said the immigration proposal is political gamesmanship. “It poisons the well for those of us who are working toward a more secure border and responsible, bipartisan reform of our immigration laws,” the statement said.

But Schumer said he is serious about reform and is continuing to talk with moderate Republican senators about signing onto the proposal, which would, among other things, bar states and municipalities from enacting their own Arizona-style rules and penalties related to immigration because those rules could “undermine federal policies.”The Arizona law, signed last week by Gov. Jan Brewer, makes it a state crime to be in Arizona illegally and requires police and other law-enforcement agents to check documents of people they reasonably suspect to be illegal.A new Gallup Poll indicates that 39 percent of Americans support the law, 30 percent oppose it and 31 percent have not heard of it or have no opinion. The telephone survey was taken Tuesday and Wednesday and had a margin of error of plus or minus 4 percentage points.Attorney General Eric Holder is reviewing the law’s constitutionality.

Tamar Jacoby, president of the pro-reform ImmigrationWorks USA, has warned that a politically motivated, all-Democratic push for immigration reform could dramatically set back efforts to enact a new comprehensive policy. But she said it’s too soon to write off the latest Senate proposal as a political gambit and remains cautiously optimistic.”There’s still a chance that this isn’t just playing politics with it,” said Jacoby, whose organization backs reform from a center-right, pro-business perspective. “There are signs that they are still making some effort into making it a bipartisan push. Of course, it also still has a chance to go off the rails, but we so far are still walking that fine line.”

Democrats acknowledged they cannot pass the bill without help from at least a handful of Republican senators. House Democratic leaders have said they are waiting for the Senate to take action first.”The urgency of immigration reform cannot be overstated,” Schumer said.

Democrats want to border security before legalization

WASHINGTON Democratic senators writing an immigration bill are circulating details about their emerging proposal that would secure the border before illegal immigrants could become legal U.S. residents.

The plan would increase the number of border and immigration enforcement agents, and lays out security benchmarks. The Associated Press obtained a copy of the draft legislation on Wednesday that is being developed by Sens.

Harry Reid of Nevada, Charles Schumer of New York and Robert Menendez of New Jersey.Arizona’s new strict immigration law has led to renewed demands for Congress to pass a comprehensive immigration bill.But in this election year, Republicans have been reluctant to consider an immigration bill.(AP)

Four U.S. senators want Facebook to make it easier for its more than 400 million users to protect their privacy as the website develops new outlets to share personal information

SAN FRANCISCO Four U.S. senators want Facebook to make it easier for its more than 400 million users to protect their privacy as the website develops new outlets to share personal information.The call for simpler privacy controls came in a letter that the senators plan to send Tuesday to Facebook founder Mark Zuckerberg. The Associated Press obtained a draft of the letter signed by Sen. Charles Schumer, D-N.Y.; Sen. Michael Bennet, D-Colo; Sen. Mark Begich, D-Alaska; and Sen. Al Franken, D.-Minn.It marks the second time in the past three days that Schumer has expressed his misgivings about a series of changes that Facebook announced last week. The new features are designed to unlock more of the data that the online hangout has accumulated about people during its six-year history.

Schumer sent a letter Sunday to the Federal Trade Commission calling for regulators to draw up clearer privacy guidelines for Facebook and other Internet social networks to follow.The political pressure threatens to deter Facebook’s efforts to put its stamp on more websites, a goal that could yield more moneymaking opportunities for the privately held company.

Facebook’s expansion “raises new concerns for users who want to maintain control over their information,” the senators wrote in their preliminary draft.In a statement late Monday, Facebook spokesman Andrew Noyes said the company wants to meet with Schumer to explain its commitment to privacy.

“We’ve developed powerful tools to give our users control over what information they want to share, when they want to share it and with whom,” Noyes said.Among other things, Facebook is plugging into other websites so people can communicate their interests with their online entourages. Facebook also tweaked its own website to create more pages where people’s biographical information could be exposed to a wider audience.

Before personal information can be shared with other websites, the senators want Facebook to seek users’ explicit consent, a process known as “opting in.” Facebook currently can share some personal information with websites unless individual users opt out by telling the company they don’t want those details to be passed along.The senators also object to Facebook’s decision to allow other businesses store users’ data for more than 24 hours.

Zuckerberg, who turns 26 next month, says he just wants to build more online avenues for people to connect with their friends and family. Some of his previous efforts have been detoured by privacy concerns, most notably in 2007 when Facebook users revolted against notification tool, called Beacon, that broadcast their activities on dozens of websites.Facebook responded to that rebellion by giving people more control over Beacon before scrapping the program completely. (AP)