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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (15063)	11/7/2004 11:51:33 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

China to Keep to Stable Yuan Policy-Paper Sun Nov 7, 2004 07:23 PM ET SHANGHAI (Reuters) - China will maintain a stable monetary and yuan policy as it tries to keep inflation in check, state media cited a central banker as saying, amid resurgent speculation Beijing may tinker with the rigidly held currency. But the country should keep moving toward more market-oriented interest rates, the Securities Times cited Wang Yu, a senior member of the central bank, as saying. China raised interest rates for the first time in nine years last month, triggering talk that Beijing may also hasten steps to adopt a market-driven currency and unshackle the yuan, which has been pegged to the dollar at around 8.28 since the 1997-98 Asian financial crisis. Economists reckon a yuan shift could happen any time. "The central will henceforth do its best to protect the stability of the yuan's exchange rate, laying the foundations for future economic development," Wang was quoted as saying during a financial industry seminar in Beijing over the weekend. Top financial officials have stepped up pledges recently to make the yuan more flexible, while stressing the need to head off volatility. China has come under increasing international pressure to free up the yuan. Washington says the country derives an unfair trade advantage from an undervalued currency. Beijing, meanwhile, has pledged to make the yuan more flexible through reforms -- but will do so in its own time and without bowing to pressure from outside. © Reuters 2004. All Rights Reserved. reuters.com