Zhou says China's yuan band may be widened

Yuan flexibility is "desirable" and China can consider "gradually" widening the yuan's trading band, central bank governor Zhou Xiaochuan said Monday 5 March.

``We have to ensure the flexibility of the yuan in our consideration to widen the currency's movement,'' Zhou said at the annual meeting of the National People's Congress in Beijing. The nation can contemplate the broadening of ``the range in which the currency trades,'' he said.

``The movement should be based on the principle of supply