Premier Wen Says China to Make Yuan More Flexible as Paulson Summit Nears

(Bloomberg) -- China's Premier Wen Jiabao pledged to loosen controls on the exchange rate and take steps to curb a record trade surplus, a week before a summit in the U.S. to discuss ways to reduce imbalances.

Since scrapping a decade-old link to the dollar in July 2005, the yuan has been restricted to a maximum 0.3 percent daily move against the U.S. currency. U.S. Treasury Secretary Henry Paulson, who has refrained from labeling China a currency manipulator, has called for a more freely traded yuan to help address the widening trade gap between the two nations.


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