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To: ild who wrote (245867)	6/16/2003 11:28:19 PM
From: ild	Respond to of 436258

China Yuan Forwards Reverse Gain; China Says Policy Unchanged June 17 (Bloomberg) -- China's yuan contracts that reflect the future value traders place on the currency reversed gains after China said it will keep the yuan stable and there is no change to its foreign exchange policy. An official at China's State Administration of Foreign Exchange, who declined to identify herself, said the government has no fixed schedule for deregulating the yuan, which has been fixed at 8.3 against the dollar since 1994. One-year forwards fell to a discount of 1,300 points from the fixed spot rate at 10:58 a.m. in Hong Kong, according to Bloomberg data. The rate implies the Chinese currency, if freely traded, would be 8.1470 to the dollar in one year. The discount widened to as much as a record 1,850 points after U.S. Treasury Secretary John Snow yesterday said the U.S. supports China's steps away from a fixed exchange rate. ``The forward rates came off their highs simply because of a report saying China will maintain the foreign exchange regime,'' said Kazuhiro Takeuchi, senior manager of the trading group in Hong Kong at Mizuho Corporate Bank Ltd., Japan's largest bank. Takeuchi expects China to keep the policy at least for the coming six months as the country needs a weaker currency to keep its economy growing. Last Updated: June 16, 2003 23:04 EDT