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Central bank governor says China supports strong dollar IHT CAPE TOWN: 'We hope to see a strong dollar, we support a strong dollar,' Zhou Xiaochuan, central bank governor, told reporters in Cape Town, where he was attending a meeting of world central bankers. Zhou Xiaochuan, the governor of China's central bank, said Monday that his country supported a strong dollar and would not raise interest rates next week. The comments on the dollar come three days after the U.S. Treasury secretary, Henry Paulson Jr., stepped up efforts to slow the currency's slide to record lows against the euro and the Canadian dollar. Paulson signaled last week that the U.S. currency would rebound, predicting it would reflect "long-term strength" in the American economy. "We hope to see a strong dollar, we support a strong dollar," Zhou told reporters in Cape Town, where he was attending a meeting of world central bankers including the U.S. Federal Reserve chairman, Ben Bernanke.
When asked about the timing of the next rate increase, Zhou said: "I don't want to say for the longer term but not next week." Speculation has been intense in recent days that a move by the central bank is imminent, given recent data showing that the economy is still growing rapidly and showing that inflation is at the highest in more than a decade. Officials from the Group of Seven industrialized nations have increased pressure on China to allow the yuan to appreciate more and take the burden off other currencies.
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