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IMF keeps watch on Brexit, stands ready to offer support | Canindia News

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IMF keeps watch on Brexit, stands ready to offer support

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CanIndia New Wire Service 0 comments

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Washington, June 25 (IANS) The managing director of the International Monetary Fund (IMF), Christine Lagarde, said on Friday that following the vote in favour of Britain’s exit, or “Brexit”, from the European Union, her organisation will keep watch on the outcome and is “ready to support” member countries in any financial difficulties they might come up against.

“We take note of the decision by the people of the United Kingdom. We will continue to monitor developments closely and stand ready to support our members as needed,” Lagarde said in a statement, EFE news agency reported.

At the same time, Lagarde urged British and European authorities to work together to “ensure a smooth transition to a new economic relationship between the UK and the EU, including by clarifying the procedures and broad objectives that will guide the process”.

The IMF managing director also gave assurances that “we strongly support commitments of the Bank of England and the ECB (European Central Bank) to supply liquidity to the banking system and curtail excess financial volatility”.

Two weeks ago the IMF released a report warning of a screeching halt, a strong devaluation of the pound sterling and an inflationary upsurge in the British economy, should the “Brexit” choice win the referendum on Thursday.

The impact of Britain leaving the European Union continues to devalue the pound, with declines of 4 per cent and 6 per cent against the euro and the dollar, respectively, though losses were minimised in the course of Friday morning.

–IANS

vr

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