China to change exchange rate policy gradually
China is planning to change its exchange rate policy for the Chinese yuan gradually, Prime Minister Wen Jiabao said Wednesday. China will “pursue a managed floating exchange rate for the Chinese currency," Wen added. Since almost 10 years, the Chinese currency is pegged to the dollar, which depresses its value artificially, making Chinese exports cheaper. Some economists argue that the yuan could appreciate 40% if the government allowed it to float freely.