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China supports strong US dollar
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Zhou Xiaochuan, China's central bank chief, has said that China supports a strong US dollar, putting weight behind the slumping currency.

 

The governor of the People's Bank of China, who has just attended a two-day G20 meeting focusing on global financial stability held in South Africa's Cape Town, said Wednesday that US Treasury Secretary Henry Paulson predicted a long-term recovery of the sliding dollar during the meeting, and asked about the Chinese side's opinion.

 

Zhou said he told Paulson China hopes to see a strong dollar.

 

He said the slight depreciation of the dollar does not mean the currency is weak. Only when it devalues drastically can it be called weak, the scenario of which is likely to bring uncertainty to the world economy, to the reluctance of all parties concerned.

 

The greenback has experienced continuous depreciation recently. Driven by bleak picture of the housing sector, its value declined to record low against that of the euro on Tuesday.

 

(Xinhua News Agency November 22, 2007)

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