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RPT-INTERVIEW-China c.bank adviser calls for yuan to resume rise

Published 03/29/2010, 11:09 PM
Updated 03/29/2010, 11:44 PM

By Victoria Bi and Jason Subler

SHANGHAI, March 30 (Reuters) - China should let the yuan resume its gradual appreciation as quickly as possible, a newly appointed central bank adviser told Reuters on Tuesday.

Xia Bin, who is also a researcher with the Development Research Centre, a think-tank under the cabinet, said China should stick to its "managed floating exchange rate system".

"(China) should resume the pre-crisis managed floating exchange rate as quickly as possible," Xia said.

Beijing has effectively pegged its currency to the dollar since mid-2008 to cushion exporters from the financial crisis, a policy that has come under growing fire from Washington.

Xia was one of the three economists named on Monday as members of the monetary policy committee of the People's Bank of China that plays a vital role in forming monetary policy.

The other two new members are Zhou Qiren, head of the China Center for Economic Research at Peking University, and Li Daokui, a professor at Tsinghua University.

The committee is scheduled to hold a meeting on Tuesday afternoon to discuss monetary policy issues, state media reported. (Writing by Zhou Xin; Editing by Ken Wills)

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