The PBOC said that the move is aimed at solving a host of problems that the 11-year peg to the dollar had been causing on the back of China's recent economic expansion. "The move is aimed at easing trade imbalances, boosting domestic demand and increasing Chinese companies' competitiveness," the PBOC said in a statement on its website. "It will also help to increase the independence of monetary policy, improve the effectiveness of financial controls, help maintain the basic balance of imports and exports to improve trade conditions, stabilize prices and cut corporate costs."