BRUSSELS, Jun. 21  -- The European Union (EU) on Saturday welcomed the decision by China to proceed further with the reform of its currency RMB exchange rate regime and to resume the RMB exchange rate flexibility.

"Such a move will be beneficial for both the Chinese economy and the global economy," the European Commission, the EU's executive arm, said in a statement.

The People's Bank of China, China's central bank, earlier on Saturday announced a decision to proceed further with the reform of the exchange rate regime to enhance the flexibility of the RMB's exchange rate.

"The implementation of the decision will help achieve more sustainable growth in the global economy, contribute to reduce external imbalances and strengthen the stability of the international monetary and financial system," the commission said.

The commission said it looks forward to work closely with the Chinese authorities bilaterally and in the G20 to address successfully the current challenges to the global recovery.

"By enhancing the flexibility of the RMB exchange rate, the Chinese authorities are providing an important contribution to the success of th G20 Toronto summit," it said.