The cost of hosting the 2008 Beijing Olympics has risen from initial estimates of $1.6 billion to $2 billion. It is still lower than the cost of hosting Athen’s games - $2.4 billion.

Beijing’s Vice-Mayor Liu Jingmin said the rise in the yuan and increased security costs were to blame.

“Security is one of the most important things in the preparation of the Olympics. The security work is proceeding smoothly and we are absolutely confident that the 2008 Olympics will be safe and secure,” Liu said.

It seems difficult to see how a rise in the yuan would cause an increase in the budget. If products are sourced locally there shouldn’t be any difference. Imported materials should actually be cheaper.

Read more: Rising Yuan, Security Up Beijing’s Olympics Budget