Japan welcomed China's decision Thursday to float the yuan against a basket of foreign currencies as the first step toward globalizing its economy, Chief Cabinet Secretary Hiroyuki Hosoda said.

"It must be the conclusion of the Chinese government having considered various things. We pay our respects to that," the top government spokesman said.

"I think it is the first step toward its economic globalization, " he said.

China announced Thursday its currency, the RMB yuan, will be traded at a rate of 8.11 to the US dollar starting 19:00 Thursday, and the yuan to US dollar pegging system is switched to a basket of foreign currencies.

Finance Minister Sadakazu Tanigaki also praised the decision, saying Japan "has to carefully watch its effects as we think flexible yuan rates will benefit not only China but also Japan and the global economy."

Source: Xinhua