IMF chief calls for cooperation between Britain, Europe to ensure smooth transition

To ensure smooth transition, IMF calls for Britain and Europe for cooperation

June 25, 2016

To ensure smooth transition, IMF calls for Britain and Europe for cooperation

The International Monetary Fund (IMF) has called on Britain and the EU authorities to work collaboratively to ensure a smooth transition, after Britain voted to leave the European Union in a referendum on Thursday.

“[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]W[/dropcap]e urge the authorities in the U.K. and Europe to work collaboratively to ensure a smooth transition to a new economic relationship between the U.K. and the EU, including by clarifying the procedures and broad objectives that will guide the process,” IMF managing director Christine Lagarde said.

The IMF supports the Bank of England and the European Central Bank to supply liquidity to the banking system and curtail excess financial volatility, Lagarde said in a statement.

On Thursday, the U.S. Federal Reserve also said in a statement that it was prepared to provide U.S. dollar liquidity through its existing swap lines with central banks to address pressures in global funding markets.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he Fed said it was carefully monitoring developments in global financial markets in cooperation with other central banks, following Britain’s referendum, as the possible financial pressure following the exit might have adverse impact on the U.S. economy.

In a referendum held on Thursday, the majority of British people voted in favor of the country’s leaving the EU.

U.S. Treasury Secretary Jacob Lew on Thursday also made a statement on Britain’s referendum, saying that the Treasury Department will work closely with London, Brussels and other international partners to ensure continued economic stability, security, and prosperity in Europe and beyond.

Britain and other policymakers have the tools necessary to support financial stability, which is key to economic growth, said Lew.

Note:
1.Xinhua

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