SEOUL (MNI) - Europe stands a "very good" chance of getting out of its current debt crisis, although the process will take time, Riksbank Deputy-Governor Lars Nyberg told Market News International Friday.

"There's a very good chance to get out of the situation in Europe in a slow, but workable fashion," he said on the sidelines of the Financial Stability Board meeting here.

SEOUL (MNI) - The global economic recovery is here to stay but it is also at risk as a result of financial market fragility and the end of fiscal stimulus cycles, Financial Stability Board Chairman and Bank of Italy Governor Mario Draghi said here Friday.

"It's not going to be a strong recovery in the short- to medium-term," he told reporters at a briefing on the sidelines of an FSB meeting here.

BEIJING (MNI) - The reserve assets which developing countries have no choice but to hold are subject to possible depreciation risk because of potential swings in the values of the reserve currencies that they are denominated in, a People's Bank of China official has warned.

BEIJING (MNI) - The People's Bank of China set the yuan's central parity rate at 6.7973 to the U.S. dollar on Friday, higher than the previous trading day's central parity of 6.8003.

Today's parity was set below the record high of 6.7685 on Aug.9.

The yuan finished at 6.8084 against the U.S. dollar on the over-the-counter (OTC) market Thursday, higher than Wednesday's close of 6.8115.

BRUSSELS (MNI) - European Union policymakers reached political agreement late Thursday to set up four new financial regulatory authorities, successfully concluding months of negotiations.

The deal will lead to the creation of four new supervisory authorities, one of which will be part of the European Central Bank and will oversee macroprudential supervision. The new bodies are to be operational by the start of 2011.

By Yali N'Diaye

WASHINGTON (MNI) - The U.S. accounting standard setting body is still collecting comments on its proposal to apply fair value accounting to all financial instruments, and Federal reserve Chairman Ben Bernanke said during his Financial Crisis Inquiry Commission hearing Thursday that it is not the best idea for long-term loans.

That is not to say fair value -- also known as mark-to-market -- should be eliminated, he said.

By Johanna Treeck

FRANKFURT (MNI) - European Central Bank President Jean-Claude Trichet Thursday presented significant upward revisions to Eurozone growth forecasts and noted further improvement in money markets, but he nevertheless pledged to maintain the current level of support at least until mid-January 2011.

Although Trichet sounded surprisingly optimistic and emphasized that "we are in a process" of exiting from non-standard operations, the ECB may still postpone for quite some time a second attempt to withdraw the emergency liquidity measures.

By Johanna Treeck

FRANKFURT (MNI) - European Central Bank President Jean-Claude Trichet Thursday presented significant upward revisions to Eurozone growth forecasts and noted further improvement in money markets, but he nevertheless pledged to maintain the current level of support at least until mid-January 2011.

Although Trichet sounded surprisingly optimistic and emphasized that "we are in a process" of exiting from non-standard operations, the ECB may still postpone for quite some time a second attempt to withdraw the emergency liquidity measures.