Lots of folks (including the FT!) seem puzzled by the broad strength of Chinese exports so far this year -- The answer tho seems easy. China's real exchange rate has fallen by at least 15% over the last couple of years -- giving China's exports a big boost 1/

. @sobel_mark has a good piece today for OMFIF making the case that an appreciation of the yuan is a necessary component of any global effort to bring China's surplus down. I of course agree 2/

@sobel_mark A bit technical, but there is now overwhelming evidence that China has resumed intervention to limit the yuan's APPRECIATION. The rise in settlement when the yuan is at the center point of the band is part of the story, as is the general increase in the SCB's foreign assets 3/

@sobel_mark Given the impact that the weak yuan is having on the entire global economy -- notably on Europe -- and given that yuan weakness is now sustained by intervention, there is a very strong case for a global push for China to let the yuan rise 4/