Foreign exchange reserves should be.....>

CHINA PRESS: Foreign exchange reserves should be kept steady to stabilize market

expectations, the Financial News, a journal run by the People's Bank of China,

reported Tuesday, citing Zong Liang, chief economist of the Bank of China.

Regulators need to take effective measures to deal with sharp, short-term

volatility of the yuan exchange rate and prevent large changes in cross-border

capital flows, Zong said. Regulations for capital controls should be further

improved to stabilize the yuan exchange rate, while the transition to a

market-oriented exchange rate should be pushed forward, Zong argued. Regulators

should continue to guide market expectations and prepare for yuan appreciation

and Federal Reserve rate increases, Zong said. (Financial News)