Creator Capital Ltd Ord CTORF

Stable Yuan

[warrenbuffet99]

China vows stable yuan exchange rate in 2002 Monday January 14, 9:44 PM EST BEIJING, Jan 15 (Reuters) - China would keep its yuan exchange rate stable in 2002 and make progress towards capital account convertibility, Central Bank Governor Dai Xianglong said on Tuesday. "The exchange rate formation mechanism will be improved while a stable exchange rate maintained," Dai said in a statement. "Better management of the current account will be accompanied by progress in capital account convertibility." The yuan is now open only on the current account, but China is expected to give the yuan more breathing space in 2002 as WTO entry opens more of its economy to international trade and investment. Analysts say full convertibility is still at least five years away. Dai also said the euro was the second most important unit in its foreign exchange reserves, after the U.S. dollar. "It is my feeling the euro is very important in China's reserves," he told a news conference. U.S. dollars make up the largest portion, followed by the euro, and then the Japanese yen, Dai said but declined to give a breakdown.