France aims at UK trade dominance

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IOL business dec3 Christian Noyer 2 . Bank of France Governor Christian Noyer. File photo: AFP

The City of London should no longer be the euro's main financial centre so the euro zone can “control” most financial business in the region, France's central bank governor said in an interview published on Monday.

Banque de France Governor Christian Noyer said there was “no rationale” for allowing the UK to be the “offshore” financial hub of the euro zone.

“Most of the euro business should be done inside the euro area. It's linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency,” Noyer told the Financial Times while touring Asia to promote Paris as a trading centre for China's renminbi currency.

The comments from the central banker, who is also a member of the European Central Bank's governing council, may arouse UK fears of a euro zone plot to end London's status as Europe's financial centre.

Britain is demanding safeguards to prevent the European Central Bank from highjacking the regualatory agenda and imposing rules on EU countries that are not in the single currency as the euro zone moves towards a banking union. -Reuters


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