UPDATE 1-Brazil’s central bank welcomes China yuan move

* Brazil sees yuan exchange move a positive step

* Bank says needs to see how situation plays out
(Recasts; Adds details, background)

BRASILIA, June 20 (BestGrowthStock) – Brazil’s Central Bank on
Sunday welcomed China’s move to boost flexibility of the yuan
exchange rate, saying the decision showed China’s willingness
to help the global economy.

China announced on Saturday that it would resume making the
yuan more flexible, signaling that it was ready to break a
23-month-old peg to the dollar that had come under intense
international criticism.

“The announcement by the Chinese central bank regarding
greater fluctuation of the yuan, is welcome,” Central Bank
President Henrique Meirelles said in a terse statement.

“It shows the disposition of the Chinese government to
contribute to greater global economic equilibrium. But we need
to wait to see what the effects will be.”

Analysts believe China announced the decision in part to
reduce tensions at the upcoming Group of 20 meeting of nations
in Canada following months of pressure from Washington and
charges from around the world that it was manipulating its
currency to favor its export sector.

China is Brazil’s largest trading partner, importing large
amounts of commodities including soy, petroleum and iron ore.

(Reporting by Isabel Versiani, Writing by Brian Ellsworth,
editing by Marguerita Choy)

UPDATE 1-Brazil’s central bank welcomes China yuan move