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China Pledges to Buy Euro Debt

In a show of support for the euro, Chinese Premier Wen Jiabao assured European officials that China would continue to invest in European bonds despite the the ongoing debt crisis that has diminished the value of European securities. China recently bought Spanish government bonds and promised to buy Greek bonds when they next go on sale.

In what could be seen as a shot at America’s monetary policy, Wen said that China must further diversify its foreign currency holdings that historically, have largely comprise USD-denominated securities.

Source: BBC News [1]

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Scott Boyd

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