China's central bank has indicated over the weekend that the yuan would be more flexible in the coming days, though it gave clarification that significant changes should not be expected and at the last check, the Chinese currency still stands at about 6.8 against the US dollar.

Analysts are predicting that Beijing would allow the currency to appreciate slowly which should indicate encouraging signs for China and the world economy but policymakers seemed reduced to fence-sit for now, further awaiting for developments ahead of the new round of G20 meet this coming weekend.

Shaun Rein of the China Market Research Group based in Shanghai observed that China is merely throwing some bone for the appreciation of the international community following some pressures from the United States for Beijing to revalue the yuan.

Arguing that China is enjoying too much advantage by manipulating its currency, US plans to drum up the issue in the G20 summit, but Mr Shaun is under the impression that China is already heading to the right path.

He said that "China really believes that it has to have a stable economy and I agree with them on this, I actually think it's a red herring that the United States or the European economies are going to boom if China quickly revalues the yuan."

Mr Rein added that many exporters in China are looking forward to a stable currency, which means a slow but flexible appreciation, fearing that "if the government were to appreciate the yuan too fast or too much, you'd really be hurting the export sector of China causing a lot of unemployment."

And Beijing-based business consultant John Gruetzer from Intercedent could not agree more, cautioning that those anticipating for a dramatic revaluation are only bound for disappointment, stressing that "up to a maximum of 10 per cent is the upper limit of what you're going to be seeing."

Mr Gruetzer added though that Beijing is wary of its export offerings becoming less attractive and competitive with possibility of losing some deals to nations such as Vietnam and Cambodia, but its recent moves still "take the pressure off them in terms of their own pricing of exports."

The United States is quick to appreciate the latest policy-change from China, declaring that the new position being espoused by Beijing should lead to a more balanced global economy.

However, Mr Rein is not that upbeat on the new development as he warned that a fast-rising yuan could actually lead to more problems, stressing that "there are huge risks and part of it is actually huge risks to the United States."

He pointed out that wages in China are currently going up and couple that with an appreciating yuan, the cost of manufacturing products such as iPhone or iPad could rise up considerably and that means "you're going to have higher prices for American, Australian and European consumers."

Mr Rein maintained that an accelerated appreciation could only lead to rampant inflation, batting instead for "a more stable slow rise of the yuan, which would be good for China and good for the rest of the world."