The People's Bank of China said on Thursday it would gradually increase flexibility in the yuan's exchange rate, the Standard of Hong Kong reported. The bank said market forces would then play a fundamental role in setting the value of China's currency. The statement coincided with the one-year anniversary of foreign-exchange reforms which, the bank said, had produced the expected results to date. In July 2005 China let its currency revalue by 2.1% and shifted from a dollar peg to floating against a basket of currencies. Since then, the currency has risen 1.8%. The central bank did not provide a timeline for any changes.