The European Central Bank said Friday it is ready to provide additional liquidity for financial markets if needed in the meltdown sparked by Britain's decision to quit European Union.
"Following the outcome of the UK referendum, the European Central Bank is closely monitoring financial markets and is in close contact with other central banks," it said in a statement.
"The ECB stands ready to provide additional liquidity, if needed, in euro and foreign currencies," the bank said.
"The ECB has prepared for this contingency in close contact with the banks that it supervises and considers that the euro area banking system is resilient in terms of capital and liquidity," it added.
The pound collapsed and world stock markets descended into pandemonium in reaction to the outcome of the Brexit referendum, fuelling a wave of global uncertainty.
Sterling hit a 31-year low, crashing 10 per cent to $1.3229 at one point, and the euro also plummeted against the US currency as the Brexit result caught markets by surprise.
European stock markets went into free fall at the opening, mirroring a rout in Asian markets, which were still open as the referendum results trickled in.
The ECB said it would "continue to fulfil its responsibilities to ensure price stability and financial stability in the euro area." © AFP, 2016
