WASHINGTON, March 16 The United States welcomed
China's recent decision to allow its currency's value to vary
more against the U.S. dollar, a Treasury spokesperson said on
U.S. Treasury Secretary Jack Lew spoke on Saturday evening
by phone with Chinese vice-premier Wang Yang in a previously
scheduled call, the spokesperson said.
"Lew welcomed China's recent announcement to widen the daily
trading band for the renminbi against the U.S. dollar and
emphasized the need for China to move towards a
market-determined exchange rate," the spokesperson said.
China's central bank eased its grip on the yuan on Saturday
by doubling the daily trading range for the currency. The move
added teeth to a promise it would allow market forces to play a
greater role in the economy and its markets.
The People's Bank of China (PBOC) said the exchange rate
will be allowed to rise or fall 2 percent from a daily midpoint
rate CNY=SAEC it sets each morning. The change is effective from
Analysts said the move was a sign of confidence that the
central bank had successfully fought off a plague of currency
speculators and signalled that regulators believe the economy
was stable enough to handle more promised reforms going forward.