The International Monetary Fund has welcomed Beijing's newly announced system to value the country's currency, saying it will allow market forces to play a greater role in the nation. China cut the yuan's value against the dollar for a second day, sending ripples through financial markets and raising fears that the currency could fall further. After yesterday's devaluation, Chinese authorities said they were seeking to push market reforms in a one-time move. Officials say they will now use the previous day's close, foreign exchange demand and supply and the rates of other major currencies to decide the daily rate around which the Chinese currency can trade. The IMF said the step could be a boon in the long run. An IMF spokesman said in a statement, the exact impact will depend on how the new mechanism is implemented in practice. China has been criticized by some for keeping its currency undervalued to gain a trade advantage for its exports. Beijing also seeks to have the yuan included in the IMF's basket of special drawing rights (SDR) basket reserve currencies.