Forex reserve to have more Euros

China plans to increase the ratio of Euros in its foreign exchange holdings given the stability in the European Union (EU) economic growth and in the value of the European single currency, said a central bank vice governor on Thursday.

However, China has no plans yet to reduce the proportion of US dollar assets in its coffers, Wu Xiaoling told an economic forum in Brussels, the Shanghai-based Oriental Morning Post reported Friday.

China's forex reserves reached US$ 1.2 trillion at the end of March and about 70 percent of the holdings are believed to be in US dollar assets, especially US treasuries.

To address the trade imbalance with western countries, China could take measures to stimulate domestic consumption and improve the flexibility of the Chinese currency.

"If we intend to solve the problem of imbalanced trade, we will first increase the flexibility of the yuan exchange rate, but that will not be the main means," Wu said.