G7 to issue statement if Britain votes to exit EU – Sources

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Tokyo | Published: June 23, 2016 9:25:20 AM

Group of Seven finance leaders will issue a statement stressing their readiness to take all necessary steps to calm markets if Britain votes to exit the European Union, said government officials with direct knowledge of the preparations.

Major central banks are ready to use existing swap arrangements to offer emergency liquidity supply to address any shortage of dollar funding upon a Brexit vote. (Reuters)Major central banks are ready to use existing swap arrangements to offer emergency liquidity supply to address any shortage of dollar funding upon a Brexit vote. (Reuters)

Group of Seven finance leaders will issue a statement stressing their readiness to take all necessary steps to calm markets if Britain votes to exit the European Union, said government officials with direct knowledge of the preparations.

Finance authorities of the G7 advanced economies are negotiating a draft of the statement that would be issued shortly after Thursday’s referendum results become clear, the officials said on condition of anonymity due to the sensitivity of the matter.

Japanese Finance Minister Taro Aso may also issue a separate statement to prevent a Brexit vote from triggering excessive yen rises, the officials said.

Major central banks are ready to use existing swap arrangements to offer emergency liquidity supply to address any shortage of dollar funding upon a Brexit vote.

Global markets are nervously watching the outcome of the referendum that is still too close to call, with investors and policymakers warning that a vote to leave the EU could unleash turmoil in financial markets.

Japanese policymakers are worried a Brexit vote would boost demand for the safe-haven yen and trigger an unwelcome yen rise that hurts exports.

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