FX Week

LOOSE CHANGE

LOOSE CHANGE

If the UK joins the European Monetary Union, the foreign exchange industry can expect 9 per cent of business to disappear, according to deputy governor of the Bank of England Howard Davies. He was speaking at last week's Reuters FX conference when he pointed out that 9 per cent of London's FX turnover is between the Deutsche mark and other EMS currencies.

"Depending on which countries are in the first wave, part of this activity will disappear," he said. Davies forecast that if EMU goes ahe