ECB Couldn’t ‘Tolerate’ London Grip on Euro Trading Post-Brexit – France’s Noyer

European authorities could not allow London to remain the trading centre for the euro if Britain left the European Union, former Bank of France Governor Christian Noyer said on Thursday.

In an article for economic think tank OMFIF, Noyer, who was one of the European Central Bank’s most senior figures until late last year, sent the latest warning that the euro zone would try to wrestle more control of trading back from London.

The volume of euro-dollar trading alone was some $640 billion (£450.5 billion) a day in London last year and traders in the City financial district now buy and sell more than twice as many euros as the whole 19-member euro zone.

“If Britain left the EU, the euro area authorities could no longer tolerate such a high proportion of financial activities involving their currency taking place abroad,” Noyer wrote.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.