China's reforms on the Renminbi (RMB) exchange rate have built broad latitude for itself, commented the Straits Times, a local English daily, on Monday.

"Last week's announcement likely marks the first step toward further liberalization of China's currency," read the editorial, adding that China's central bank signals to act as nimbly as required.

Calling the movement astute, the comment said that the Chinese government managed to thwart hot-money speculators who have been expecting the yuan to rise by 15 percent to 30 percent.

It pointed out that, with the reforms, mechanisms are in place for further and more predictable adjustments to yuan's value, which "allows the market to better work out the thinking behind the yuan."

Last Thursday, China revalued the exchange rate of the RMB yuan to the US dollar by 2.1 percent to 8.11, abolishing the yuan to the dollar pegging system applied in the past few years.

Source: Xinhua