Premier Wen Jiabao said on Saturday that China will strengthen the trading flexibility of the renminbi, Reuters reported. Wen cited the recent fall of the yuan’s value to the bottom of its trading band as an indication of the need for wider latitude. “China will continue to closely monitor the yuan’s trading movements… and will strengthen yuan’s trading flexibility in either direction,” Wen said. Some believe the central bank has been preparing to widen the trading band, which is currently restricted to 0.5% above or below the daily mid-point. This would also remove pressure on the US, which maintains that the Chinese currency is undervalued. The renminbi has appreciated by 40% in real terms against the dollar since 2005.