UK exits the EU by 52% to 48% of votes, Pound Sterling falls in forex market
The UK has voted by 52% to 48% to leave the European Union after 43 years in an historic referendum.
London and Scotland voted strongly to stay in the EU but the remain vote has been undermined by poor results in the north of England.
UKIP leader Nigel Farage hailed the result as the UK's "independence day".
The pound fell to its lowest level against the dollar since 1985 as the markets reacted to the results.
The referendum turnout was 71.8% – with more than 30 million people voting – the highest turnout at a UK election since 1992.
Wales and the majority of England outside London voted in large numbers for Brexit.
Labour's Shadow chancellor John McDonnell said the Bank of England may have to intervene to shore up the pound, which lost 3% within moments of the first result showing a strong result for Leave in Sunderland and fell as much as 6.5% against the euro.
UKIP leader Nigel Farage – who has campaigned for the past 20 years for Britain to leave the EU – told cheering supporters "this will be a victory for ordinary people, for decent people".
Mr Farage – who predicted a Remain win at the start of the night after polls suggested that would happen – said Thursday 23 June would "go down in history as our independence day".
He called on Prime Minister David Cameron, who called the referendum but campaigned passionately for a Remain vote, to quit "immediately".
A Labour source said: "If we vote to leave, Cameron should seriously consider his position."
But pro-Leave Conservatives including Boris Johnson and Michael Gove have signed a letter to Mr Cameron urging him to stay on whatever the result.
Labour former Europe Minister Keith Vaz told the BBC the British people had voted with their "emotions" and rejected the advice of experts who had warned about the economic impact of leaving the EU.
He said the EU should call an emergency summit to deal with the aftermath of the vote, which he described as "catastrophic for our country, for the rest of Europe and for the rest of the world".
Germany's foreign minister Frank Walter Steinmeier describes the referendum result as as "a sad day for Europe and Great Britain".
But Leave supporting Tory MP Liam Fox said voters had shown great "courage" by deciding to "change the course of history" for the UK and, he hoped, the rest of Europe.
And he called for a "period of calm, a period of reflection, to let it all sink in and to work through what the actual technicalities are," insisting that Mr Cameron must stay on as PM.
Exit process
Scotland's First Minister Nicola Sturgeon has said that the EU vote "makes clear that the people of Scotland see their future as part of the European Union" after all 32 local authority areas returned majorities for Remain. BBC
LONDON, June 24 (Reuters) - Bank of England Governor Mark Carney made a statement after voters decided in a referendum that Britain should leave the European Union.
Here is his full statement:
The people of the United Kingdom have voted to leave the European Union.
Inevitably, there will be a period of uncertainty and adjustment following this result.
There will be no initial change in the way our people can travel, in the way our goods can move or the way our services can be sold.
And it will take some time for the United Kingdom to establish new relationships with Europe and the rest of the world.
Some market and economic volatility can be expected as this process unfolds.
But we are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning.
The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward.
These adjustments will be supported by a resilient UK financial system - one that the Bank of England has consistently strengthened over the last seven years.
The capital requirements of our largest banks are now ten times higher than before the crisis.
The Bank of England has stress tested them against scenarios more severe than the country currently faces.
As a result of these actions, UK banks have raised over 130 billion pounds of capital, and now have more than 600 billion pounds of high quality liquid assets.
Why does this matter?
This substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to UK businesses and households, even during challenging times.
Moreover, as a backstop, and to support the functioning of markets, the Bank of England stands ready to provide more than 250 billion of additional funds through its normal facilities.
The Bank of England is also able to provide substantial liquidity in foreign currency, if required.
We expect institutions to draw on this funding if and when appropriate, just as we expect them to draw on their own resources as needed in order to provide credit, to support markets and to supply other financial services to the real economy.
In the coming weeks, the Bank will assess economic conditions and will consider any additional policy responses.
A few months ago, the Bank judged that the risks around the referendum were the most significant, near-term domestic risks to financial stability.
To mitigate them, the Bank of England has put in place extensive contingency plans.
These begin with ensuring that the core of our financial system is well-capitalised, liquid and strong. This resilience is backed up by the Bank of England's liquidity facilities in sterling and foreign currencies.
All these resources will support orderly market functioning in the face of any short-term volatility.
The Bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy.
That economy will adjust to new trading relationships that will be put in place over time. It (Other OTC: ITGL - news) is these public and private decisions that will determine the UK's long-term economic prospects.
The best contribution of the Bank of England to this process is to continue to pursue relentlessly our responsibilities for monetary and financial stability. These are unchanged.
We have taken all the necessary steps to prepare for today's events.
In the future we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward. (Reporting by Estelle Shirbon)
___________________________________________________
___________________________________________________
Listserv moderated by Toyin Falola, University of Texas at Austin
To post to this group, send an email to USAAfricaDialogue@googlegroups.com
To subscribe to this group, send an email to USAAfricaDialogue+subscribe@googlegroups.com
Current archives at http://groups.google.com/group/USAAfricaDialogue
Early archives at http://www.utexas.edu/conferences/africa/ads/index.html
---
You received this message because you are subscribed to the Google Groups "USA Africa Dialogue Series" group.
To unsubscribe from this group and stop receiving emails from it, send an email to usaafricadialogue+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
No comments:
Post a Comment