Positive policies can make euro respected global currency: ECB president

The euro has the potential to become a respected international currency through efforts such as fiscal consolidation and maintaining an open international trade system, offering global investors reliable alternatives to the U.S. dollar, said European Central Bank President Christine Lagarde in Beijing on Thursday.

Amid growing global concerns regarding the unpredictability of U.S. fiscal and trade policies, as well as the fragility of the U.S. dollar-centered system, Lagarde noted that she observed the size of the euro in the global market has not decreased; rather, it has remained stable.

"There are proposals that could increase its role on a global basis if we can strengthen and reinforce and deepen our capital market union, for instance, so that investors have full confidence in the economic landscape of Europe. If we can respect our fiscal policies in the way that has been agreed between the members of the European Union, and it gives confidence that we will respect the rules that we set for ourselves. If we continue to have an open trade relationship with as many countries as possible, and we have currently agreement with 72 countries around the world. And we have to develop them and pursue them. And if we can continue to respect the rule of law, I think that the euro is in a good position to attract the attention of investors," Lagarde told China Global Television (CGTN) in an interview.

The ECB president noted that with policy maker support and time, the euro has the potential to become a respected international currency.

"I'm not suggesting that the euro will take over and be the currency of reference and the international reserve currency in a matter of years, I think it takes more time, but I think that the euro has the ingredients if the policy makers so decide and move forward and have the courage to do so, to be a very respected currency by those who invest money in places where they feel confident that the rules will be respected and that the trade will prosper and investment will be welcome," Lagarde said.

Moreover, Lagarde said she believes that a stronger euro would benefit both Europe and the global economy by offering alternatives.

"I think that transition if it was to happen and certainly the steps that we should take in that direction would be beneficial for Europe, but would be beneficial for the world as well because it's always good to have alternatives," she said.

Positive policies can make euro respected global currency: ECB president

China's smart consumer device manufacturing sector has seen rapid growth this year, fueled by a government-backed trade-in program and the expansion of diversified consumption scenarios.

From January to May, the country's electronic information manufacturing industry maintained strong momentum, with total revenue of enterprises above the designated size reaching 6.49 trillion yuan (some 900 billion U.S. dollars), up 9.4 percent year on year.

Production of electronic consumer goods recorded steady increases. Over 140 million computers were produced during the period, up 8 percent from a year earlier, while 14.04 million television units rolled off assembly lines, up 1.7 percent year on year.

"Consumption scenarios are becoming more diversified. On the demand side, new smart products are quickly entering the market, opening up emerging markets in home services, health management, and beyond. On the supply side, the industry is clearly moving toward transformation and upgrading, with new growth drivers accelerating," said Zuo Kairui, director of the Industry Development Department of the Institute of Policy and Economics at the China Academy of Information and Communications Technology.

Looking ahead to the second half of the year, China plans to go on promoting its "AI plus consumer goods" initiative, encouraging the development and application of new technologies such as smart wearables, ultra-high-definition video, brain-computer interfaces, and robotics.

Meanwhile, authorities will continue to foster high-growth consumer sectors and guide the smart device industry toward greener, more service-oriented development.

China's smart consumer device industry sees rapid growth amid policy boost