Central Bank officials have reiterated the country's stand of gradually moving towards a freely traded currency. The officials were responding to two U.S. Senators' threat of imposition of trade sanctions, unless there is an increase in the value of the Yuan. The People's Bank of China's Deputy Governor Wu Xiaoling said that China would let market forces gradually allow the currency move more freely. Xiaoling also said that a wide fluctuation of foreign exchange rates could be detrimental to the country's economic development. 

Meanwhile, U.S. Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) will be visiting Beijing this week to get a first hand assessment of China's efforts in currency reforms, ahead of making a final decision on passage of a bill that threatens to impose a 27.5% import tariff on Chinese products.