PBOC head: Weak dollar boosting commodity prices
19 June 2008
The head of People's Bank of China expressed concern that a weakening US dollar may push up commodity prices, the South China Morning Post reported. Zhou Xiaochuan, speaking in Annapolis at the Sino-US Special Economic Dialogue, said higher commodity prices would in turn force the yuan to rise, adding pressure on inflation. Alan Holmer, the US department of the treasury's special envoy to China, declined to respond to Zhou's concern, saying, "only the secretary of the treasury speaks about the dollar, and I'm not going to break that here".