World Economy

‘Brexit’ Fears Haunt UK Euro Trade

‘Brexit’ Fears Haunt UK  Euro Trade‘Brexit’ Fears Haunt UK  Euro Trade

 If there is a symbol of British ambivalence to Europe then it may be the euro itself. The capital of euro trading prospers outside the eurozone, but London’s dominance of the $5.3 trillion-a-day foreign exchange market could wane if Britain left the European Union, Reuters reported. While British leaders have long resisted replacing pounds with euros, traders in London financial center now buy and sell more than twice as many euros as the whole 19-member eurozone and more dollars than the United States. For four decades, London has been the undisputed king of foreign exchange, but some investors fear that if British voters decide to leave the EU, the City would eventually lose its top position, especially in euro trading. “If the UK left the European Union, London’s dominance of foreign exchange including euro trading would gradually decline and then end as the flows moved to Asia and other European capitals,” US investor Jim Rogers, who cofounded the Quantum Fund in 1973 with George Soros, told Reuters.