Banque de France Eliminates Franc Fixing; French Banks Sign Market-Making "Charter"

BANKS

Two major changes took place this past week in the Paris foreign exchange market: the Banque de France abolished the daily spot franc "fixing" at the Paris Bourse and nine of the largest French banks signed a market making agreement in an attempt to improve liquidity in the French franc and the Deutche mark/franc cross rate.

According to executives at banks in Paris, the abolition of the "fixing" was simply a move to get rid of an old fashioned institution that has no place in the current mar