China indicates it will allow yuan to strengthen

China has indicated it will allow the yuan to rise against the dollar and other Western currencies. The Chinese central bank announced it would make its exchange rate mechanism "more flexible", but it gave no details about the timing or extent of changes. The yuan has been effectively pegged to the dollar, drawing criticism that China was protecting its exporters. US President Barack Obama and the head of the International Monetary Fund (IMF) welcomed China's announcement. The US had been particularly critical of Beijing, accusing it of keeping its currency artificially weak. The yuan has been held at about 6.83 to the dollar since July 2008.