The Chinese yuan's break through the....>

CHINA PRESS: The Chinese yuan's break through the psychologically important

level of seven against the U.S. dollar would help drive the further

liberalisation of the exchange rate, according to a commentary in China Money, a

PBOC-operated magazine. The article, by Guan Tao, a former official at the State

Administration of Foreign Exchange, said the break through would unlock a wider

range which would strengthen the flexibility of the yuan and test the

adaptability of the market to currency fluctuation. Any shock from the yuan's

new level was quickly absorbed by the market, which had confidence in the

Government. Guan said the PBOC had shown its ability to manage market

expectations, and said the currency would not have a free fall.