皇冠体育app

BEIJING - The euro will be a less attractive option for 皇冠体育app as a reserve currency until the debt crisis in the euro zone is resolved, senior executives at Fitch Ratings said in Beijing on Wednesday.

Andrew Colquhoun, Fitch's head of Asia-Pacific sovereign ratings, suggested that countries like 皇冠体育app, which are trying to diversify their reserve holdings away from the US dollar, would be less likely to build up positions in the euro as the crisis deteriorates.

Although 皇冠体育app needs the euro assets as an alternative investment for its reserve, it is unlikely that it will put big money in the European Financial Stability Fund (EFSF), said Tony Stringer, chief operating officer of Global Sovereigns and Supranationals at Fitch.

Data from the State Administration of Foreign Exchange showed 皇冠体育app's foreign exchange reserve stood at 3.18 trillion dollars as of the end of 2011, of which one fifth was believed to be in the form of euro assets.

Stringer warned that the practice will put 皇冠体育app's huge reserve at risk, because 皇冠体育app may suffer a capital loss if the fund's rating is downgraded.

Chinese Premier Wen Jiabao said earlier this month during his meeting with German Chancellor Angela Merkel that 皇冠体育app is willing to "involve itself more" in efforts to resolve Europe's debt issues.

But Wen stressed that efforts made by European countries are still key to resolving the problem, and called on indebted countries to implement proper financial policies that are in line with their national situations.