Reform of the yuan exchange rate........>

CHINA PRESS: Reform of the yuan exchange rate needs to push ahead at a stable

pace given that any change in policy will bring challenges, the Shanghai

Securities News reported Friday, quoting Guan Tao, former head of the balance of

payments division at the State Administration of Foreign Exchange (SAFE) and now

a research fellow with the 40Forum think tank. The final goal of reform is to

achieve a free floating  exchange rate, but in the process, there would be some

regression according to the changes of market, Guan said. The appreciation of

the yuan exchange rate is a strong push-back to the yuan depreciation

expectations, Guan argued. Strict controls on overseas direct investments and a

further opening up to foreign direct investment are the main reasons for the

increase in foreign exchange reserves in the first half of the year, Guan said.

(Shanghai Securities News)