BEIJING (MNI) - The People's Bank of China sold CNY75 billion in one-year paper on Tuesday as part of its regular biweekly open market operations, with the yield remaining unchanged at 1.9264%, traders said.

The yield has now remained unchanged for 13 weeks in a row, after having risen each of the previous two weeks.

The central bank earlier today drained CNY55 billion yuan from the interbank market via 28-day bond repurchase agreements, traders said.

Today's volume of one-year is nearly double the CNY40 billion sold last week.

BEIJING (MNI) - The People's Bank of China set the yuan's central parity rate at 6.8262 to the U.S. dollar on Tuesday, slightly higher than the previous trading day's central parity of 6.8263.

The yuan finished at 6.8266 against the US dollar on the over-the-counter (OTC) market Monday, higher than last Friday's close of 6.8275.

Based on today's parity, the yuan is up 0.01% y/y against the dollar, according to Market News International calculations.

By Johanna Treeck

WASHINGTON (MNI) - The euro is perceived as a credible international and will remain so in future, European Central Bank Governing Council member Axel Weber said Monday in an interview with CNBC.

Asked whether the euro was risk of a collapse, Weber said: " "No, there is not such risk."

"There is of course tension in the fiscal policy framework of some Eurozone countries but if you look at the perception of the euro in international financial markets the euro is viewed as a credible currency," Weber said.

FRANKFURT (MNI) - Strong data out of the Eurozone's biggest economies reinforce the idea that the recovery from the worst recession since the Depression is taking hold.

Greece's decision Friday to activate the E30 billion EMU/IMF aid plan has not yet tempered the market selloff of Greek sovereign debt. Indeed, in recent days - despite Greece's official request for aid, which many thought would bring relief to markets -- spreads on Greek bonds have hit successive new record highs, making the cost of government borrowing untenable.

WASHINGTON (MNI) - The following is the text of a release from the Federal Reserve Bank of Dallas with comments by its President Richard Fisher, following the publishing of its 2009 Annual Report Monday:

Effective monetary policy hinges on the Federal Reserve retaining its bank regulatory role and its independence from political pressures, says Federal Reserve Bank of Dallas President and CEO Richard W. Fisher in the Bank's 2009 Annual Report.

FRANKFURT (MNI) - Germany's economy is clearly in the process of recovering and, despite a slowdown early in the year, it will regain momentum in the current quarter, European Central Bank Governing Council member Axel Weber said Monday, reiterating a view already expressed by the Bundesbank, which he heads.

Germany's labor market remained robust during the crisis and because of this consumption is expected to be stable in the recovery, Weber told an audience in New York, according to a prepared speech provided by the Bundesbank.

By Steven K. Beckner

(MNI) - Federal Reserve policymakers will be under no pressure to make a monetary policy shift or to signal one after two days of meetings this week, but members of the Federal Open Market Committee will have some important communication challenges before them.

The FOMC is highly unlikely to change its target for the federal funds rate from the zero to 25 basis point range where it has been since December 2008.

FRANKFURT (MNI) - The crisis in the Eurozone is "not because of the currency but rather because of the imperfection of the economic and currency union," European Central Bank Governing Council member Yves Mersch said in an interview released Monday.

Speaking to the Luxembourg-based publication, Wort, Mersch also criticized those who have never liked the single currency for now making it "responsible for the crisis."