The shift of banking activities to Paris from London after Brexit is starting to have a measurable impact on France’s trade in financial services, and the dynamic is likely to accelerate, according to the country’s central bank.
(Bloomberg) — The shift of banking activities to Paris from London after Brexit is starting to have a measurable impact on France’s trade in financial services, and the dynamic is likely to accelerate, according to the country’s central bank.
British and American banks relocating trading to the French capital have boosted exports by providing services to other European countries from Paris, while their sales within France no longer count as imports.
The effect was a net positive of around €1.5 billion ($1.7 billion) in 2022, driving the total trade surplus in financial services to €10.4 billion, the Bank of France said in its annual report on the country’s current account balance.
Francois Villeroy de Galhau, who heads the central bank, attributed the Paris’s breakthrough to the range of activities already present and an unusual unity between the government and regional authorities in efforts to lure finance after Brexit, despite political differences.
Authorities are still meeting with international financial firms interested in moving, he added.
“The success of Pairs post-Brexit is spectacular, accelerated recently and is beyond our expectations,” Villeroy said at a press conference in Paris. “This phenomenon is not over yet because we are seeing an accelerating trend — success breeds success.”
Broader figures for France’s current account showed the surplus in all services reached a record high of €52 billion, supported by tourism and shipping. Still, the country overall deficit also reached a record of €53.9 billion as imported energy costs surged.
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