PBOC chief courts yuan revaluation

China's Central Bank head Zhou Xiaochuan said in an interview with Chinese financial magazine Caijing last Friday that the country must revisit its currency valuation, given the growing trade surplus with the US. Zhou said increased domestic consumption was the best way to reverse the trend. China's Commerce Ministry said Thursday that China's overall trade surplus this year is poised to reach US$90 billion to US$100 billion, as against a surplus of US$32 billion in 2004. US Treasury Secretary John Snow is due to visit China in a few days and is under pressure from Congress and US manufacturers to lean on China to revalue the yuan. China allowed a 2.1% appreciation in the value of the yuan against the US dollar in July.