China will maintain its current level of foreign currency reserves
held in euros, believing the currency remains undervalued, central
bank governor Dai Xianglong said on Wednesday.
"I have always believed that the euro is
undervalued. Given the recent appreciation of the euro, my
estimation has been proven," Dai said.
Economic trends in major countries suggest the
euro will appreciate further this year, "but the market will
have the final say", he said.
China had foreign currency reserves of 165.6
billion dollars at the end of 2000, Dai said, with about 25 per
cent in euros.
Some 60 per cent of China's foreign currency
reserves are in dollars, and up to 10 per cent in yen.
Last October Premier Zhu Rongji told E.U.
President Romano Prodi that China would continue to hold euros
despite the fall in value of the currency.
(sohu) |
