According to a report from BBC News,the Chinese central bank announced it would make its exchange rate mechanism "more flexible" and allow the yuan to rise against the dollar and other Western currencies.
The yuan has been effectively pegged to the dollar, drawing criticism that China was protecting its exporters.
The US has accused China of keeping its currency artificially weak. The yuan is currently is undervalued, which helps Chinese firms compete overseas and contributes to the large surplus in China's international trade. China has kept the currency from rising by selling yuan for dollars and subsequently built up massive foreign exchange reserves.
China boosts its currency's flexibility so the yuan will be stronger in the future.
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