Russia expresses faith in 'stable' euro

2nd June 2010, Comments 0 comments

The euro's role as a reserve currency will be reliable for years to come, Alexei Ulyukayev, first deputy chairman of Russia's Central Bank, said, the Interfax news agency reported on Wednesday.

"I think that the euro's position is stable for years to come, because behind it are Europe's huge economy, a large GDP (and) an already established commonality of the euro zone," Ulyukayev told the news agency.

He acknowledged the European Union's problems but said conservative investors like the Central Bank would not change the structure of their investments due to Europe's financial troubles.

"The European Union does have problems related to the fact that the monetary policy is unified while the fiscal one is segmentary.

"But that's the problem that they are learning to solve and are solving therefore nothing scary is going on," Ulyukayev said, adding the debt crisis could help revitalize the bloc's economy.

Russian President Dmitry Medvedev on Tuesday praised the EU's handling of the crisis, saying Russia, which keeps about 40 percent of its currency reserves in euros, was watching the situation carefully.

The European common currency has been shaken in recent weeks by fears about the Greek debt crisis, and investors have also been worried this week about tensions caused by Israel's deadly raid on an aid convoy to Gaza.

© 2010 AFP

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