Worldwide "alarm" for the Greek elections
15.06.2012
21:32
The crucial elections in Greece have alarmed the central banks around the world
Such is the degree of concern for executives of non-euro economies that they have already planned their reaction if the result "tests out", even from Monday, the strength of the euro and the cohesion of the Eurozone.
As Reuters broadcasts, citing sources from the G-20 group, the major central banks are prepared to provide liquidity to the markets after the elections in Greece on June 17. Moreover, they are preparing other emergency measures as well to stabilize markets if the result of Greek elections sparks a new round of instability in the country and the Eurozone. It is noteworthy that Reuters asked agents from the ECB to comment on the story but received their refusal.
This "initiative" of central bankers, which consists of taking emergency measures to prevent the value of non-euro national currencies from taking off, is led by chairman of the central bank of Switzerland Thomas Jordan, with the assistance of the authorities of the central banks of Japan, China, India, Denmark and Norway.
According to the agency, the economic leaders of the most powerful economies are ready - depending on the reaction of the markets - to have an urgent meeting of finance ministers of the G7 even on Monday or Tuesday, before the meeting of the G20 leaders.
They will assess the option of issuing a joint statement that the political leadership is willing to take all necessary measures to safeguard financial stability.
It is not yet clear whether the FED will take part in this move, but a U.S. official said that in any case the Greek elections "will not give the decisive signal about what will follow" in the European debt crisis and that currency exchange lines are already on hand, while central banks could engage in additional financing operations with repurchase agreements. It should be noted here that the U.S. have such a line of currency exchange in effect with Japan.
As Reuters broadcasts, citing sources from the G-20 group, the major central banks are prepared to provide liquidity to the markets after the elections in Greece on June 17. Moreover, they are preparing other emergency measures as well to stabilize markets if the result of Greek elections sparks a new round of instability in the country and the Eurozone. It is noteworthy that Reuters asked agents from the ECB to comment on the story but received their refusal.
This "initiative" of central bankers, which consists of taking emergency measures to prevent the value of non-euro national currencies from taking off, is led by chairman of the central bank of Switzerland Thomas Jordan, with the assistance of the authorities of the central banks of Japan, China, India, Denmark and Norway.
According to the agency, the economic leaders of the most powerful economies are ready - depending on the reaction of the markets - to have an urgent meeting of finance ministers of the G7 even on Monday or Tuesday, before the meeting of the G20 leaders.
They will assess the option of issuing a joint statement that the political leadership is willing to take all necessary measures to safeguard financial stability.
It is not yet clear whether the FED will take part in this move, but a U.S. official said that in any case the Greek elections "will not give the decisive signal about what will follow" in the European debt crisis and that currency exchange lines are already on hand, while central banks could engage in additional financing operations with repurchase agreements. It should be noted here that the U.S. have such a line of currency exchange in effect with Japan.
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