Central banks react to Brexit. They are prepared to provide liquidity – Magazine Saturday

11:10 • Business

By Paulo Moutinho – Business Journal

From the Bank of England to the ECB, through the Nordic and to Japan, many central banks are reacting to the outcome of the referendum dictated out of the United Kingdom of the European Union. They are all ready, they say, to inject liquidity in order to calm the global financial markets
Bank of England:. 250 billion in emergency liquidity
Mark Carney, Governor the Bank of England, says it is “well prepared for this.” “A few months ago, the bank judged that the risks surrounding the referendum were the most significant for the country in the short term,” he added.
Stressing that the British central bank has long been preparing for the Brexit scenario, He explains that “established contingency plans.” It was done immediately, and in an extraordinary way, a liquidity injection into the financial system amounting to 250 billion pounds (309 billion) and still left the assurance that “the BOE will not hesitate to take further action if necessary. “
ECB: Ensures emergency liquidity
After the result of the UK referendum, in which the British vote, mostly on” Leave “, the Bank European Central announced in a statement that it is closely monitoring financial markets and is in close contact with other central banks. “
the monetary authority of the euro zone ensured that it is” prepared to provide additional liquidity, if necessary, in euro and other foreign currencies. “the entity headed by Mario Draghi also said that” the ECB is prepared for this contingency in close contact with the banks that oversees and believes that the banking system of the euro zone is strong in terms of capital and liquidity “
Central Bank of Switzerland:. brake on the country’s currency
the Swiss National Bank announced, quoted by BBC News, that” intervened “this morning in the forex market in order to stabilize the Swiss franc – considered a currency of refuge. – after the victory of Brexit
“following the ‘Leave’, the Swiss franc came under upward pressure,” said the monetary authority said in a statement. Indeed, when it became clear that the majority of Britons voted for the UK out of the European Union, the Swiss franc appreciated considerably against the single currency to be worth 1.06 francs per euro at 07h against 1.10 francs at midnight .
Central Bank of Norway: 13 200 million crowns for the bank
Central Bank of Norway forward immediately with measures to curb the impact of the referendum on the markets. Made available to the financial sector 13 200 million Norwegian kroner (almost EUR 1.5 billion), an amount which was totally absorbed in the auction.
These liquidity auctions are common in Norway, but the “weapon “was available earlier than usual in order to meet the high volatility in the markets in surf victory” Leave “in the referendum
Bank of Japan:. Prepared to cooperate with other central banks
After the outcome of the British referendum, the Bank of Japan said it was “ready” to work with other major central banks to inject a large amount of liquidity in order to contain volatility in financial markets.
“the Bank of Japan, in close cooperation with relevant national and international authorities, will continue to monitor closely how the outcome may affect the global financial markets,” he said in a statement.
Bank India: There liquidity, if necessary
Central Bank of India was one of the first to respond to the results of the referendum which led to the departure of the United Kingdom of the European Union. The governor Raghuram Rajan said in a statement published Friday, the monetary authority “continuously maintains a close monitoring of market developments, both domestically and internationally.”
“India’s economy has good fundamental, low short-term external debt and considerable reserves, “the same statement quoted by the Financial Times, trying to calm the fears internal.
that end, the central bank also stressed that it is prepared to provide liquidity and to follow other steps necessary to ensure the orderly functioning of markets.

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