The Monetary Authority of Singapore (MAS) said here Friday that the revaluation of China's Renminbi (RMB) is a positive development for Asia, according to Channel News Asia report.

The MAS, Singapore's central bank, expected the move to create a more flexible pricing structure, which will facilitate the adjustments across economies.

Deeming its current policy of a modest and gradual appreciation of the Singapore dollar appropriate, the MAS said that it would not intervene unless the exchange rate is likely to breach the policy band or market conditions are volatile.

It reiterated that Singapore manages its exchange rate against a weighted basket of currencies of its major trading partners, which enables the city state to accommodate the changes within the existing framework of the exchange rate system.

On 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.

The central bank also announced the adoption of a managed float to an undisclosed basket of foreign currencies, allowing the trading price between the dollar and the yuan to float within a 0.3 percent band around the official central parity.

Source: Xinhua