The euro is likely to survive 2012 despite the debt crisis in the euro currency zone, International Monetary Fund Managing Director Christine Lagarde said on Friday. European leaders will hold another summit this month to try to resolve the crisis which threatens the survival of the single currency 10 years after it went into circulation.
"Will 2012 be the end of the euro currency? I seriously don't think so. Its a young currency, its a solid one as well," Lagarde told journalists on a visit to South Africa.
"You have within the zone, not in relation to the currency, serious pressure and issues concerning the sovereign debt, concerning the strength of the banking system which are being addressed. But the currency itself is not one that would vanish or disappear in 2012, not at all."
Lagarde, in South Africa as part of her first tour of the continent since taking the IMF post, reiterated that the fund would likely revise downwards its 4 percent growth forecast for the world economy in 2012. Emerging markets such as South Africa have borne the brunt of global risk aversion triggered by the euro zone crisis. Its rand currency fell nearly 23 percent against the dollar last year.
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