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Washington - The US Federal Reserve said on Friday it was ready to provide dollar liquidity to other central banks to offset any global market pressures resulting from Britain's vote to exit the European Union.
It said in a statement: "The Federal Reserve is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the US economy."
The Fed said it was "carefully monitoring developments in global financial markets, in co-operation with other central banks," after the results of Britain's referendum on EU membership were announced early on Friday.
Britons' unexpected decision in favour of exiting the 28-nation bloc roiled global equity markets and sent the pound diving to a three-decade low.
The Fed statement followed an announcement by the Group of Seven that their central banks were standing ready to use liquidity instruments if needed to counter extreme market volatility.
