Beijing to allow more market say in yuan pricing

Policymakers in China are set to allow investment and trade flows to have more say in the exchange rate of the Chinese currency as China’s trade surplus expanded to US$33.8 billion, the largest since January 2009, Bloomberg reported. The yuan hit a 20-year high against the US dollar on Monday. Zhou Xiaochuan, the Governor of the People’s Bank of China, said last month that the central bank will “basically” end intervention in the currency market and widen the trading band where the yuan is allowed to fluctuate in an “orderly way.”