Exchange rate may float more freely

BEIJING – China will allow the value of the yuan to float more freely, experts told reporters on the sidelines of ongoing Chinese People's Political Consultative Conference on Tuesday.

People's Bank of China (PBOC) chief Zhou Xiaochuan said the exchange rate is now close to its balanced level, thanks to China's improving industrial structure and shrinking trade surplus.

The PBOC sets a limit of 0.5 percent around the mid-day price, within which the exchange rate may vary.

Li Daokui, a policy adviser to the central bank, said a 0.75 percent daily trading range would be acceptable.

"The reform has to be carried out step by step. So for the first step, a 0.7 or 0.75-percent daily trading range is feasible," said Li, who is also director of the Center for China in the World Economy at Tsinghua University

"Since the global financial crisis four years ago, China has played an important role in rebalancing the world economy (by allowing the yuan to float more freely)," Li said. "China has already achieved substantial progress in reforming the yuan exchange rate."