City of London 'should not be euro's main financial centre'

3 December 2012

Removing the City of London from its role as the main financial centre in the eurozone would be beneficial to the economic bloc's recovery.

That is the opinion of Christian Noyer, governor of the Bank of France, who believes the time has come for the single currency area's operational base to be moved away from the UK.

Speaking to the Financial Times, Mr Noyer insisted there is "no rationale" behind the eurozone's monetary hub being based "offshore", adding that its location should now be shifted to allow the 17 member states of the bloc to fully "control" their own business.

"It's linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency," he explained.

Mr Noyer went on to say that while he is not against some business being conducted in London, the bulk of the area's operations should be carried out domestically rather than externally.

By Asim Shah

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