The yuan strengthened on Monday to its highest level since 2005, the New York Times reports. Its increase was a result of Chinese officials saying on Saturday that they would reform the exchange rate and enhance flexibility. Previously, China had not allowed its currency to move up as it maintained a competitive advantage exporting its goods abroad. However, it is yet to be seen whether Chinese authorities have committed to changing currency policy or whether this was a move to diffuse criticism about China’s currency before the G20 summit. “The renminbi is a political tool. Clearly the timing of the move was politically determined. It is not an economic tool yet. This will take years, not days or weeks,” said Bill Belchere, a global economist at Mirae Asset in Hong Kong. Analysts say in the long term, yuan appreciation would benefit the world economy.