China pledges to stabilize Euro

Discussion in 'Economics' started by MohdSalleh, Dec 22, 2010.

  1. <img src="" alt="Vice-Premier Wang Qishan, right, gestures to European official Joaquin Almuniain." border="0" height="169" width="300" />
    <p>We own you, biatch.
    <br />

    China extends help to tackle euro crisis
    By Jamil Anderlini, Financial Times
    December 21, 2010 -- Updated 1356 GMT (2156 HKT)


    * China pledges "concerted action" to support European financial stabilization
    * Beijing will continue buying bonds from countries at center of sovereign debt crisis
    * China has $2,650B in foreign exchange reserves; Euro rallies on pledge
    * Promise came during EU talks with China vice-premier Wang Qishan

    Beijing, China ( -- China has promised to take further "concerted action" to support European financial stabilisation, including continuing to buy the bonds of countries at the centre of the sovereign debt crisis, according to senior European officials.

    The officials, who declined to be named because of the sensitivity of the issue, said one of China's vice-premiers Wang Qishan, whose responsibilities include oversight of the economy, had given assurances that China would step up support for European stabilisation efforts "if necessary".

    The EU is China's biggest export market and so Beijing has a strong interest in helping to support stability in the region. Two-way trade between the EU and China was valued at $434bn in the first 11 months of this year -- up more than 30 per cent on the same period in 2009.

    Mr Wang's comments boosted the value of the euro against the US dollar as traders saw it as a signal China would continue to allocate a significant portion of its $2,650bn foreign exchange reserves to euro-denominated sovereign debt.
  2. Pull my finger. :p