Chinese think tank suggests increase in yuan flexibility

China should increase the flexibility of its currency, a state think tank was quoted as saying Monday, arguing a stronger yuan would be in the nation's interest. "China should further increase the flexibility of yuan's exchange rate and appropriately widen the yuan trading band in 2008," the State Information Centre said in a report published by the China Securities Journal. The daily trading band of the yuan -- 0.5 per cent on either side of a reference rate against the US dollar set by the central bank at the start of each session -- should be doubled to one per cent next year, the think tank said. It said under current circumstances, a stronger yuan would do China more good than harm... CNA