Yuan given more flexibility to boost exports

China's decision to allow the renminbi to trade in a wider range against the US dollar will help boost exports and improve use of the currency globally, experts said.

On Friday, the State Council released a policy document, which indicated that the flexibility of the renminbi exchange rate would be enhanced to keep it stable and at an adaptive and balanced level. It, however, did not provide a timing or scope for the potential adjustment.

Wang Shouwen, vice-minister of commerce, said the steps seek to improve the exchange rate mechanism and expand the scale of yuan trade settlements. Currently, a number of countries such as the United States, the United Kingdom and Japan use the exchange rate as an important tool to boost exports. Most of these countries have allowed their currencies to devalue, which in turn has led to a sharp appreciation of the renminbi and seriously affected China's export capabilities.