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Euro Undervalued: Chinese Central Bank Governor
Chinese central bank governor Dai Xianglong said Wednesday that euro has been undervalued and it is expected to have a good price this year.
Answering questions at a press conference here this morning, Dai said that although the euro depreciated in the past year, China's foreign exchange reserve has not been affected.
The euros in China's foreign exchange reserves were mostly converted from the Deutsch Marks and French Francs China held when the euro was launched, he said.
He added that China has sufficient reserves in US dollars for international payment, and trade with Europe is settled in euro, there is no need to convert euro into U.S. dollars, therefore.
China's foreign exchange reserves suffered no losses from euro depreciation.
There is no statistics available on whether specific enterprises have suffered losses from euro depreciation, and if any, the figure should be quite moderate, he said.
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