The People's Bank of China announced on Saturday the yuan will be allowed to fluctuate by 1 percent from a daily midpoint from Apr 16, double the previous 0.5 percent.

Although the yuan has appreciated against the US dollar 8.5 percent since June 2010, when China deepened its exchange rate reform, and about 30 percent since 2005, it has fallen 0.14 percent against the dollar since January.

The yuan's exchange rate is approaching an equilibrium level with the US dollar now, displaying characteristic two-way fluctuations.