BEIJING (MNI) – The euro will “sail through” its current sovereign
debt crisis and contribute to the stability of the international
monetary system, China’s ambassador to the European Union said.

Song Zhe’s comments, which were posted on the Ministry of Foreign
Affairs website Friday, mark the latest vocal vote of confidence from
the Chinese government for the single currency union, even as officials
there scramble to respond to the deepening crisis.

“The Chinese have always believed that the euro is sure to sail
through this current crisis,” he said.

“The consolidation of its position will play an important role in
supporting the stability of the international monetary system and push
forward the diversification of the construction of the international
system.”

Chinese Vice-Premier Wang Qishan offered concrete support to
European Union officials during talks here earlier this week, including
bond purchases, the Financial Times reported Wednesday.

Credit ratings agencies are continuing to slash their ratings and
outlooks on the sovereign debt of countries on the eurozone’s periphery.
Fitch said Thursday it has downgraded Portugal’s long-term foreign and
local currency Issuer Default Ratings (IDR) to A+ from AA- and
short-term foreign currency rating to F1 from F1+ and Moody’s warned
earlier that it might downgrade its ratings of Portugal by several
notches.

beijing@marketnews.com
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