AB:BSP says Asian banks aware of risks of euro assets
MANILA, Philippines - Asian central bankers are aware of the risks related to holding euro assets, a senior Philippine central bank official said on Tuesday, as the euro hovered above a two-month low against the dollar on worries about the euro zone's debt crisis.
"The euro decline is on account of the Greek problem basically," Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said in the Dealing Room, a Reuters Messaging chat room. "The magnitudes involved in both the debt dynamics and the fiscal dynamics are quite intimidating and so the market is quite nervous.
"What makes it worse is the possible spillover effects to the other peripheral southern states in Europe. Even larger economies may experience the liquidity shock of a sovereign debt risk."
"I think the Asian central banks are quite cognizant of the uncertainty and the risks involved in holding euro assets," Guinigundo said.
