On Wed, Jun 2, 2010 at 2:25 PM, Lighthouse007 <kristenspurgeon@yahoo.com> wrote:
The ongoing decline of the European single currency has triggered a
move that could be further detrimental to the euro, according to an
Iranian newspaper.
Iran's central bank began the first phase of sales of roughly 45
billion euros of its reserves in exchange for dollars, the state-run
Jaam-e-Jam newspaper reported on Wednesday, citing unidentified
sources.
The report was published Monday, according to the newspaper's website.
The central bank is selling 15 billion euros in the first stage of the
transactions, the newspaper said.
Mehr news agency also said Iran's foreign exchange basket "may undergo
changes" due to the recent rise of the dollar against the euro. Hamid
Borhani, Iran's deputy central bank governor, told Mehr that because
of the depreciation of the euro and the increase in value of the
dollar in domestic and international markets, the bank would "make
changes" in its forex basket.
He said the nature of the change is undetermined yet, dismissing
rumors of a "50-percent-euro and 50-percent-dollar" balance in forex
deposits.
In September 2009, Iranian President Mahmoud Ahmadinejad ordered the
use of the euro instead of the dollar as the basic foreign currency in
Forex Reserve Fund calculations.
Late last month, a story claiming that China was "reviewing" its
eurozone bond holdings rattled markets. On May 26, the Financial Times
said the review came after growing concerns about budget deficits in
countries such as Greece and Portugal.
The FT claimed representatives of China's State Administration of
Foreign Exchange, or SAFE, which manages the reserves under the
country's central bank, met with foreign bankers in Beijing to discuss
the issue. SAFE holds an estimated $630 billion of euro-zone bonds in
its reserves.
However, China refuted the report, saying Europe "has been, and will
be, one of the major markets for investing China's exchange reserves."
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