Foreign Exchange Market

French bank chief targets London’s euro status

PUBLISHED : Monday, 03 December, 2012, 9:37am
UPDATED : Monday, 03 December, 2012, 9:37am


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Britain should relinquish its status as the euro’s financial hub in order to give eurozone members more control over the single currency, France’s central bank governor has said.

In an interview published in Monday’s Financial Times, Christian Noyer of the Banque de France claimed there was “no rationale” for the City of London’s leading role in euro finance.

“Most of the euro business should be done inside the euro area,” he told the FT. “It’s linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency.”

Noyer said he was not opposed to London conducting euro business but that ”the bulk of the business should be under our control.”

Britain fears that eurozone members are planning to undermine London’s position as Europe’s financial centre.