It is a good time for China to..........>

CHINA PRESS: It is a good time for China to continue reform of its exchange rate

system because the economy is showing good momentum, capital flows have

stabilized and yuan depreciation expectations have largely reversed, Yu

Yongding, a researcher with the Chinese Academy of Social Sciences and a former

member of the People's Bank of China Monetary Policy Committee, said in an

interview with China Securities Journal published Monday. The authorities should

implement measures to deepen reform of the exchange rate formation mechanism as

soon as possible to achieve a floating yuan exchange rate, Yu noted. The

influence of market expectations on capital flows and the exchange rate should

not be exaggerated since  economic fundamentals are the decisive element, Yu

argued. Cross-border capital flows have improved due to the strict regulatory

controls but there are still challenges ahead, Yu warned. (China Securities

Journal)