ECB voices for more liquidity after GBP hit three decade’s lows on Brexit

Despite all statistical models which we or others had compiled, despite all volatility analyses or opinion polls, we hadn’t really been able to imagine that the majority of the British would really vote in favour of leaving the EU. But my imagination was insufficient. The Brits have decided in favour of a Brexit – that’s clear from the referendum results.

The European Central Bank mentioned that it is open to provide additional liquidity for financial markets if needed in the meltdown sparked by Britain's decision to quit the European Union.

Following the outcome of the UK referendum, the ECB seems like thoroughly monitoring financial markets and is in close contact with other central banks," it said in a statement.

“The ECB stands ready to provide additional liquidity, if needed, in euro and foreign currencies," the bank added. 

The ECB has prepared for this contingency in close contact with the banks that it supervises and considers that the euro area banking system is resilient in terms of capital and liquidity," it added.

The pound collapsed and world stock markets descended into pandemonium in reaction to the outcome of the Brexit referendum, fuelling a wave of global uncertainty.

Sterling hit almost 3 decades lows, crashing 10 pct to $1.3229 during the course the day, the euro also tumbled against the dollar as the Brexit result arrested almost all asset avenues astonishingly.

European stock markets plummeted into free drops soon after opening, resembling a rout in Asian markets, which were still open as the referendum results trickled in.

The ECB mentioned that it would continue to satisfy its accountabilities to ensure price stability and financial stability in the euro area.