CBK says it’s ready to intervene in markets after Brexit results

June 24, 2016
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A statement from the Bank states that it will ensure there is smooth operations following projections that suggest that Britain is poised to leave the EU bloc following the vote/FILE
A statement from the Bank states that it will ensure there is smooth operations following projections that suggest that Britain is poised to leave the EU bloc following the vote/FILE

, NAIROBI, Kenya, June 24 – The Central Bank of Kenya (CBK) has announced that it is ready to intervene in the money and foreign exchange markets following the Brexit referendum results.

A statement from the Bank states that it will ensure there is smooth operations following projections that suggest that Britain is poised to leave the EU bloc following the vote.

“News reports this morning are predicting the outcome of yesterday’s UK Referendum Brexit to leave the European Union,” the statement pointed out. “The Central Bank of Kenya stands ready to intervene in the money and foreign exchange markets to ensure their smooth operation.”

Preliminary results show that Britain’s vote to break out of the European Union, has struck a thunderous blow against the bloc and spreading alarm through markets as sterling plummeted to a 31-year low against the dollar.

Investors scrambled to sell the pound, oil and stocks as Britain took a lurch into the unknown, becoming the first country to quit in the EU’s 60-year history, a culmination of decades of suspicion over European aims of creating an ever-closer political union.

Chanting and cheering, “Leave” supporters hailed early victories in the EU referendum at a lavish party in London featuring a large cake decorated with a champagne bottle and a Union Jack flag.

Whenever a Brexit result came in, champagne corks popped as campaigners shouted out the name of the region voting in their favour at the party in the Millbank tower block in Westminster.

UK Independence Party leader Nigel Farage said the euro sceptic genie is out of the bottle and it will now not be put back.

The mood was far more subdued at the “Remain” party in London’s Royal Festival Hall where supporters were glued to TV screens clutching beers some with their hands over their mouths.

Germany’s Foreign Minister Frank-Walter Steinmeier said he regretted Britain’s decision to leave the EU, calling it a “sad day for Europe”.

“The early morning news from #GreatBritain are truly sobering. It looks like a sad day for #Europe +the #UnitedKingdom,” Steinmeier wrote on Twitter.

French far-right leader Marine Le Pen on the other hand hailed Britain’s decision and called for a similar referendum in France.

“Victory for Freedom! As I have been asking for years we must now have the same referendum in France and EU countries,” the National Front (FN) leader tweeted.

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