Central banks prepare concerted injection of dollars if ‘brexit’ – World

 Central banks prepare concerted injection of dollars if ‘brexit’
 

 3:13 p.m.
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 AFP Central banks .- Europe, USA and Japan examined concerted action liquidity in dollars if ‘brexit’, as published on Friday the Japanese business daily Nikkei .

the newspaper, without citing sources, said that the European Central Bank (ECB), the US Federal Reserve (Fed) and the Bank of Japan (BoJ) could set an emergency mechanism to supply the market with dollars and counter a slump in the pound if the British voted for leaving their country of the European Union in a referendum on June 23.

When the ‘brexit’ takes hold in the polls, authorities fear market turmoil. “ A facilitated access to dollars would provide a safety net to contain this uncertainty if the worst happened “, Nikkei writes.

“ There is a mechanism swap between several central banks, including Japan, and in this framework, each week we inject dollar liquidity to the market “, told AFP a spokesman for the BoJ. “The BoJ is in close contact with other central banks, we can not say more,” he said.

The most likely strategy would be use this mechanism dollar swap between the Fed and the central banks of Japan, Canada and Europe, the Nikkei said.

the Bank of Japan, which provides weekly dollars to financial institutions, then examine the chance to multiply this type of operation “for several days” , noted the newspaper. “The ECB and the Bank of England (BoE) will discuss and probably also with the Fed specific measures,” he said.

According to the newspaper, if ‘brexit’ the leaders of the seven most industrialized countries (G7) could issue a statement on the emergency injection of liquidity in dollars.

Fed president Janet Yellen he said on Wednesday a ‘brexit’ affect the world economy and financial conditions throughout the world. He did not mention what the Fed expected response, but “a source at the central bank said this study provide dollars to European markets”, established the Nikkei.