"The Chinese have clearly stated that they will move to a market-based, flexible exchange rate," Snow told Japanese Finance Minister Sadakazu Tanigaki, according to a statement issued by his office.

Snow noted that Chinese authorities "have taken steps over the last two years to prepare for a flexible exchange rate and that China is ready now to adopt a more flexible exchange rate and now its time to move."

While not a member of the Group of Seven, China was nonetheless invited to attend G7 finance meetings in September and February, mainly to hear complaints from the group about its reluctance to allow the dollar-pegged yuan to float.

US and European officials maintain that the yuan is undervalued, thereby giving Chinese exports an unfair advantage while making imported goods more expensive and less attractive.

Chinese officials will not be attending this week end's meeting of G7 finance ministers and central bankers, which was to open with a dinner Friday ahead of formal discussions on Saturday.