The European Central Bank (ECB) has welcomed China's decision to further reform the exchange rate mechanism of the yuan, or renminbi, and encouraged Beijing to allow for greater flexibility.
"The ECB and the President of the Eurogroup Jean-Claude Juncker welcome the decision ... to further reform the exchange rate regime of the renminbi and to enhance the flexibility of the RMB exchange rate," it said in a statement.
"We encourage the authorities to allow for greater flexibility of the RMB effective exchange rate as a means of promoting balanced growth in China and in the world economy."
The ECB said the euro zone continued to have a clear interest in a stable global financial system, as excess volatility in exchange rates would negatively impact economic and financial stability.
China announced yesterday that it would resume making the yuan more flexible, signalling that it was ready to break a 23-month-old peg to the dollar that had come under intense international criticism.
