China's exchange rate reforms to trigger further progress: S&P

China's Renminbi (RMB) exchange rate reforms are expected to trigger further steps in enhancing the country's economic and financial structure, said Standard & Poor's (S&P) Ratings Services on Friday in Singapore.

"The Chinese government is expected to continue with reforms, including improving its monetary flexibility," a S&P statement noted, adding that further progress would help raise the ratings on China.

Calling the policy change significant, the world's renowned provider of credit ratings and financial-market indices warned against uncertainties in the short term including more speculative inflows for further appreciation of the currency.

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