Saudi Arabia scraps euro foreign reserves policy

Saudi Arabia has abandoned its policy of diversifying foreign reserves into euros, deeming the eurozone unfit to manage a major world reserve currency.

Muhammad al-Jasser, vice-governor of the Saudi Arabian Monetary Agency, said the dollar remains the safest bet for central banks in the Middle East, despite America's trade and budget deficits.

"The euro has not yet gained a competitive status against the dollar as a major reserve currency. People are not going to switch to euros until European