China likes the euro

China likes the euro

If there is a good reason to hold on to the Euro, I think it is no other better reason at the moment than that one of the most powerful figure in the world has actually stated his liking for the currency.

Premier Wen Jiabao, the leader of China have spoken. He thinks that the world’s countries should work in unison to bring back confidence in the Euro currency and the European economy as a whole.

The strong support is shown through China’s close working relationship with Spain in which Wen has invited Chinese investors to actually put their money in Spain’s financial, renewable resources and electric cars industries, a report said.

According to the Wall Street Journal, Wen has iterated what he said earlier this year on the euro’s importance and its place in the world economy.  He gave the whole thing a personal touch when in mid-July, he met German Chancellor Angela Merkel.  Wen said that Europe remains a key market for China’s foreign-reserve investment and sees Europe as a key platform to achieve better returns on its huge ownership of foreign-exchange reserves. He believes that Europe is able to offersafety of its investment of the foreign-exchange assets.

~ Ardy