The Brexit could set off
competitive currency devaluations around the world, Bloomberg
News cited European Central Bank (ECB) chief Mario Draghi as
telling an EU summit Tuesday.
"We fear the reactions of countries trying to correct what
they see as an erroneous exchange rate, which could spark
competitive devaluations, increase risk premiums, and cause
turbulence," Draghi reportedly said.
A UK recession would affect all international markets
especially currency ones, said the ECB governor also saw the
Brexit possibly bringing eurozone GDP down by 0.5% over the next
three years.
The ECB has stepped up cooperation with other central banks
on currency movements and will do everything to ensure price
remain stable, Draghi said.
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