China said yesterday that it would allow a more flexible yuan, bringing to an end its controversial 23-month peg to the US dollar which has been accused of keeping Chinese exports artificially cheap. The People's Bank of China (PBOC) ruled out the one-off revaluation that US politicians had sought, arguing that there was "no basis for big fluctuations or changes". Instead, the yuan's 0.5pc daily trading band will remain unaltered, but the central bank will use a system of setting daily reference rates for the currency to slowly guide the exchange rate against the dollar higher. This is a similar...