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MNI INTERVIEW 2: Downside Yuan Risks Controllable: Advisor

MNI (London)
     BEIJING (MNI) - Downside yuan risks for the coming year are controllable
and concerns that slowing exports could hit the balance of payments were
decreasing, Li Daokui, a member of the economy committee of the Chinese People's
Political Consultative Conference (CPPCC), told MNI Tuesday.
     "Now the risks are declining," he said. "It's because the U.S. government
has said it wants to keep the yuan basically stable. The White House and we are
in line with each other in terms of hoping the yuan exchange rate remains stable
instead of (large) fluctuations."
     Li, a former member of the People's Bank of China Monetary Policy
Committee, told MNI he saw room for the central bank to cut interest rates, but
said there was also a need to build a mechanism to lower long-term loan interest
rates and look to ease the transmission of monetary policy into the real
economy.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MT$$$$,MX$$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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