Brexit could spark currency devaluations (2)

(ANSA) - Rome, June 28 - 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.