The yuan exchange rate with the U.S. dollar...>

CHINA: The yuan exchange rate with the U.S. dollar is likely to maintain its

"two-way" fluctuation trend in 2018, but it's also possible that the yuan will

continue to strengthen, Xie Yaxuan, chief macroeconomic analyst for China

Merchants Securities, and a former official at the People's Bank of China and

State Administration of Foreign Exchange in Shenzhen, wrote in an article

published Thursday in the Financial News, a newspaper managed by the PBOC. The

yuan has remained basically stable and the market's expectation for the yuan has

also been stable in general, Xie said, which has led to the PBOC halt its

intervention in the foreign exchange market and helped foreign exchange reserves

to rebound. In 2018, the yuan could rise further if the supply of foreign

currencies exceeds demand, and if capital inflows into China pick up when the

country takes further steps to open its domestic markets, Xie said. The PBOC

wants the yuan exchange rate to reflect the effectiveness of its monetary

policy, so it is likely to engage in little if any market intervention this

year, he said, adding that foreign exchange reserves could increase modestly

further. (Financial News)