China Regulator Sees Risk of Dollar Fall, Securities News Says

By Judy Chen

March 31 (Bloomberg) -- The U.S. dollar is at risk of weakening as the supply of the currency is boosted, the Shanghai Securities News reported, citing a senior official at China’s State Administration of Foreign Exchange.

The surge in the amount of dollars in circulation may also stoke inflation, Guan Tao, deputy head of the Balance of Payments Department at the currency regulator, told the Chinese- language newspaper. Guan added that it would be hard to replace the dollar as the world’s dominant currency in the short term, the report said.

The paper said Guan made the comments at a financial forum in Shanghai, and didn’t provide the date of the event.

To contact the reporters on this story: Judy Chen in Shanghai at xchen45@bloomberg.net