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China eases exchange rate control to let currency fluctuate more widely against the dollar

China's central bank says it will allow its tightly controlled currency to fluctuate more widely in value against the dollar as part of reforms aimed at making the country's economy more efficient.

The People's Bank of China said Saturday it will double the size of the band in which the yuan is allowed to fluctuate against the dollar daily. Still, it says the yuan will be allowed to gain or lose only 2 percent each day.

The widely expected move follows promises by the ruling Communist Party to give market forces a bigger role in the state-dominated economy in hopes of making it more efficient and productive.