CHINA should consider widening the yuan's daily trading band and restoring the foreign exchange system to what it was before the global financial crisis as soon as possible, the State Information Center said.

"China had better increase the flexibility of its currency valuation system before the influx of huge amounts of speculative money," the center said. It advised a gradual reform of the forex system, and said the country should first expand the daily trading band.

The People's Bank of China gives the reference quote, or daily opening rate, and allows a 0.3 percent daily trading band under the managed floating system.

The yuan depegged from the US dollar in 2005, and it had risen about 20 percent until the middle of 2008 when its climb was halted on the global financial crisis. The yuan has been flat against the dollar at 6.83.