At a forum in Aspen, Colorado, Christine Lagarde said that central bankers had their work Friday at the announcement of the victory of Brexit, and ensured that the broad masses of cash are available.
Political leaders have worked themselves for market participants that "the situation was under control. And it was under control," she said.
"There was a violent movement, brutal and immediate, the pound fell 10 percent," said Christine Lagarde.
"But there was no panic and central bankers have done the work for which they were ready in case, that is to say inject a lot of liquidity in the markets," she continued.
There was no liquidity problem Friday, unlike most severe moments of the 2008 financial crisis, she said.
The market reaction depends now, she continued, measures that take the British and European leaders to handle divorce and limit the uncertainty that results.
"To date, officials both in the UK and Europe take the uncertainty in their hands. The way they act in the coming days will really influence the direction that will take the risk," said the director General of the IMF.
Policy makers and international institutions must cooperate to manage the implications of the vote for the release of the EU the UK, she continued, noting that only Britain could formally initiate divorce proceedings, and Europe can not force his hand.
"We have strongly encouraged the effective continuation of the transition in the most efficient, most predictable, to reduce the level of uncertainty, which in turn will determine the level of risk," she said.
source: www.abs-cbnnews.com
