In one of the most explicit signals till date with respect to its current exchange rate policy, the Chinese central bank Governor Zhou Xiaochuan said his country would in due course move from Yuan's de-facto peg to the US dollar.

Without giving any time line, Xiaochuan said the country doesn't want to keep its currency pegged to dollar indefinitely and that the change in the stance is a special response designed to weather the aftermath of the global financial crisis.

In order to protect exporter and to support million of jobs in these sectors, China has not allowed Yuan to fluctuate and has held it to a very tight range around the current level of 6.82 yuan to a U. S. dollar since July 2008. China has been facing mounting pressure from its biggest trade partners to loosen currency control; a stronger domestic currency could also ease inflationary pressure, boost consumer buying power and reducing dependence on exports, say experts.

Nouril Roubini of New York University believes China might allow yuan's appreciation to a maximum of 4 percent over a period of one year.