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Russia fears for health of the euro: Medvedev

world Updated: Jun 19, 2010 20:47 IST

Hindustan Times
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Russia, which holds over 40 percent of its forex reserves in euros, fears for the health of the single currency after its dramatic plunge, President Dmitry Medvedev said on Saturday.

Medvedev, giving the final speech of the Saint Petersburg economic forum, said Russia was also concerned about a second wave of the economic crisis.

"We are very afraid for the health of the euro," said Medvedev.

"We wish it a speedy recovery because it is also our currency. It is not just a currency of the European Union, it is a currency which we use, because it is a reserve currency."

Russia's foreign exchange reserves are held largely in euros and US dollars, with about 10 percent in sterling and just over one percent in yen.

"There is lots ahead, we are afraid of a second wave (of the crisis), all of us are closely looking at the discussions in the European Union, all of us every day measure the pulse of our own economies, we watch trends, look at how foreign currencies are faring," said Medvedev.

Prime Minister Vladimir Putin told AFP in an interview earlier this month that Russia trusts and believes in the single European currency and is sure its current woes are only temporary.

The euro has slid in past months from 1.40 dollars to below 1.20 on worries about the budgets of states like Greece. But it has crept up again in recent days to above 1.23 dollars and analysts have said it appeared to be stabilising.