Govt, BOJ to Take Necessary Action after Brexit Vote: Abe

Tokyo, June 27 (Jiji Press)--Japanese Prime Minister Shinzo Abe said Monday that the government, in cooperation with the Bank of Japan, will flexibly take necessary action to ensure financial market stability following Britain's vote to leave the European Union. At a government-BOJ meeting in the morning, Abe said he has instructed Finance Minister Taro Aso to keep an even closer watch on currency and other markets. Meanwhile, Abe called on the central bank to support financial institutions and other companies by providing sufficient liquidity. The prime minister said that on Sunday night, he spoke over the telephone with BOJ Governor Haruhiko Kuroda, who was in Switzerland for Bank for International Settlements talks. Kuroda reported that the central banks of 30 countries, including the Group of Seven major powers, agreed to monitor market developments carefully and cooperate to ensure proper functioning of international markets, according to Abe. At Monday's meeting, BOJ Deputy Governor Hiroshi Nakaso said the bank will work to maintain enough liquidity in the markets mainly by using a currency swap arrangement created in 2011 among the central banks of six countries such as Japan and the United States. The meeting was also attended by Chief Cabinet Secretary Yoshihide Suga. As the British referendum's outcome was becoming clear on Friday, the yen rapidly strengthened against other major currencies, breaching the threshold of 100 to the dollar for the first time in about 31 months. The Brexit vote also triggered a stock sell-off around the globe. On Friday night, the G-7 nations issued a joint statement reiterating their cooperation to keep stability in the financial markets. END