EUROPE could definitely solve its debt problems and China would continue to support the euro s role as an alternative to the dollar in global financial markets, a Chinese central bank adviser said yesterday.
Xia Bin, an academic adviser to the People s Bank of China, told reporters on the sidelines of a forum that no one wished to see the euro disappear. Europe s debt crisis did not alter the long-term strategic position of the euro in the global monetary system, Xia said.
China is estimated to have invested 25 percent of its US$2.85 trillion foreign exchange reserves, the world s biggest, in the euro.
In the long run, it is not a problem. Europe will definitely solve the problem, Xia said. We don t want to see the euro disappear.
He also said that global financial markets were better off with a balance between the dollar and euro, as opposed to having only dollar dominance.
Walking on two legs is certainly better than walking on one leg, Xia said.
Chinese officials visiting Europe last week expressed confidence in the region s ability to overcome its debt crisis and have regularly said they believe the euro was a pillar of the global monetary system.(SD-Agencies)
