BEIJING, Aug. 26 -- China reaffirmed Thursday it would let the market decide the yuan¡¯s value and not act to appreciate it further, downplaying chances for another currency move similar to last month¡¯s landmark revaluation.

    Economists had foreseen the yuan appreciating gradually over coming months, as U.S. manufacturers complain it remains undervalued despite its 2.1-percent revaluation July 21.

    The central bank, however, has signaled it would not tolerate sharp gains in the currency.

    ¡°This will be decided by the market. The government will not decide the yuan¡¯s level,¡± Wu Xiaolin, central bank vice governor, said in an interview, reiterating earlier comments published in newspapers.

    ¡°All policies will be kept stable¡± in the second half, said Wu, referring to economic and monetary policies, as she was leaving a financial forum in Shanghai, China¡¯s commercial stronghold.

    The government scrapped the yuan¡¯s decade-old peg to the U.S. dollar July 21, roiling global stock and currency markets.

    Now, some economists think currency speculators may bet on a bigger appreciation in the yuan, especially with President Hu Jintao preparing to meet U.S. President George W. Bush in September.

    Reinforcing the Chinese Government¡¯s message that further change would be cautious, a top government economist said Wednesday China would press on with currency reforms but aim to avoid volatility.

(Source: Shenzhen Daily/Agencies)