Draghi: the Brexit can cause a devaluation of world currencies, we can not afford – TGCOM

“We can not afford not to solve” the problems of the banks, he added Draghi urging all countries :: “It ‘s time to do it.” The Brexit according Dragons can have a negative impact up to 0.5% of the GDP of the euro area. For the ECB president there will be a reduction in the growth of GDP in the next three years.

London in recession? Bad for everyone – If Britain were to end in recession, says the document, the effect on the euro would be immediate. All international markets, he said Draghi, would be affected especially foreign exchange. The ECB has thus intensified its cooperation with other central banks on currency movements and, he assured, will do everything necessary to ensure price stability.

Finding global alignment of monetary policies – what it points to the Dragons is not so much a global coordination of monetary policies, that may not be necessary, but an “alignment” of the policy. He had said in his speech at the forum of central banks in Sintra, Portugal, where he had not ruled on the output of the UK from the EU, and instead focus on the need to achieve an “advanced understanding among central banks on paths relative to monetary policy “. A path that should lead above all “to the improvement of” communication between institutions.

“We must not only think about the composition of the policies within our own jurisdictions, but also to the overall composition that can maximize the effects of monetary policies, so that our respective mandates can be achieved in the best way without further overburden monetary policy and limiting each relapse destabilizing, “said Draghi, pointing out that it is not” a preference or a choice “, but it is “simply the new reality we face.”

central banks move together – from an approach of this kind, on the other hand, would benefit not only central banks but also the global economy, by reducing unwanted side effects that cooperation would create. “Divergent monetary policies of the major central banks could create uncertainty about future intentions in terms of policies, thus leading to increased volatility in the exchange rate and higher risk premiums,” said still Draghi, noting in particular that ” competitive devaluations entail losses for all in the global economy, since they lead only to greater market volatility, which other central banks are then forced to react to defend their domestic mandates. “

the G20 was disappointing – the ECB President also cited “the disappointing result of the commitment of the G20 to raise global growth of 2% with structural measures” as an example of “how the intentions and actions may diverge “, contrasting it” the most successful example offered by the expansion of coordinated global budget in 2008-2009. “