China eases exchange rate controls

China announced on Saturday a modest easing of exchange rate controls that have been criticised by Washington and other trading partners, adding to a flurry of reform initiatives aimed at making its slowing economy more efficient. The range in which the tightly controlled yuan is allowed to fluctuate against the dollar each day will double in size, though to a still relatively narrow 2 per cent. The move was widely expected after Premier Li Keqiang promised in an annual policy speech last week to give market forces a "decisive role" in allocating credit and other resources in the state-dominated economy. The ruling Communist Party says it wants to inject more competition into the economy and nurture self-sustaining growth based on domestic consumption instead of trade and investment. Washington and other governments complain Beijing suppresses the value of the yuan, unfairly making Chinese exports cheaper abroad and hurting foreign competitors, according to a news agency.