China's Premier suggests end to yuan's dollar peg

China's Premier Wen Jiabao has said that the country is working toward a more flexible exchange rate mechanism for the value of the yuan, the first clear statement that the government aims to end the currency's nine-year fixed link to the dollar.

The government wants to create an exchange-rate mechanism based on "market demand for and supply of" the currency, Mr Wen said in a speech carried by the official Xinhua news agency. He did not give a time frame, adding that China plans to keep the yu