The head of the People’s Bank of China is suggesting that China may appropriately expand the daily trading band of the Chinese yuan.

Chinese central bank governor Zhou Xiaochuan told the official Xinhua news agency that the expansion is to allow the Chinese currency to move more freely and to better reflect supply and demand in the currency market.

Some foreign exchange experts have called the expansion a constructive move, saying Zhou’s remarks hinted that Beijing may reduce its intervention in the onshore yuan market.

The Chinese central bank widened the daily trading band five years ago to enable the yuan to float both upwards and downwards within the range of zero-point-five percent. The exchange rate of the yuan is calculated everyday in accordance with a basket of nine major currencies including the U.S. dollar.