Yuan management should maintain.........>

CHINA PRESS: Yuan management should maintain methods which have proved

effective, the Economic Information Daily, a newspaper under the official Xinhua

News Agency said in a front-page commentary Tuesday. Recent appreciation of the

yuan was a result of a weakening of the dollar, a strong China economy and the

addition of counter-cyclical factors. As pressure on the yuan to depreciate

reduces the People's Bank of China decided to withdraw some temporary measures

aimed at specific problems - and its decision to eliminate the foreign-exchange

risk provision of currency forward contracts is one of them, the newspaper said.

However, such action to decrease the effect of policies on the yuan doesn't mean

giving up on their influence. As the yuan strengthens the market may ask for

free fluctuation of the currency but foreign-exchange policies should be

appropriate and stable. They should aim for improvements but maintain stability,

the commentary said. (Economic Information Daily)