Gov't economist calls for yuan stability

A government economist said China should keep the yuan stable in an attempt to curb market expectations that have led to high levels of speculative money inflows this year, AFP reported, citing state media. "(We should) stabilize market expectation for the exchange rate and give the market a relatively stable signal on the exchange rate", said Xia Bin, an economist with the State Council. "Adjustment to the foreign exchange policy should be a key task," he added. The yuan has appreciated more than 4% against the dollar this year and around 18% since the 2005 one-off revaluation. But expectations of continued yuan appreciation have led to surging speculative inflows of hot money, which reached US$80 billion in the first quarter of this year.