IMF calls for "smooth transition" after Brexit

The Finance Minister of G7 countries and governors of their central banks said they respect the intention expressed today by the people of the United Kingdom.

The IMF has taken note of the decision of the United Kingdom. Photo: IANS

The IMF on Friday called on Britain and Europe to work together to ensure a "smooth transition" to a new economic relationship between them after British people voted to exit from the 28-nation bloc.

"We urge the authorities in the UK and Europe to work collaboratively 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," International Monetary Fund Managing Director Christine Lagarde said.

The IMF has taken note of the decision of the United Kingdom, she said in a statement.

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"We strongly support commitments of the Bank of England and the ECB to supply liquidity to the banking system and curtail excess financial volatility. We will continue to monitor developments closely and stand ready to support our members as needed," Lagarde said.

In another statement, the Finance Minister of G7 countries and governors of their central banks said they respect the intention expressed today by the people of the United Kingdom to exit from the European Union.

"We are monitoring market developments following the outcome of the referendum on the UK's membership of the EU," the statement said.We affirm our assessment that the UK economy and financial sector remain resilient and are confident that the UK authorities are well-positioned to address the consequences of the referendum outcome," the G7 statement said.

Recognising that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability, the statement said G7 central banks have taken steps to ensure adequate liquidity and to support the functioning of markets.

"We stand ready to use the established liquidity instruments to that end," G7 said adding the US will continue to consult closely on market movements and financial stability, and cooperate as appropriate.

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