ECB's pledge would involve opening so-called swap lines with the Bank of England / AFP / DANIEL ROLAND
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The European Central Bank would publicly pledge to backstop financial markets in tandem with the Bank of England should Britain vote to leave the European Union, officials with knowledge of the matter told Reuters.The ECB's pledge would involve opening so-called swap lines with the Bank of England, allowing euros and sterling to be exchanged and effectively making unlimited funding in both currencies available to European banks, the sources said.The ECB and Bank of England declined to comment.The ECB is limited in what it can do, beyond releasing funds for banks.The Bank of England has already sought to avert any liquidity squeeze ahead of the vote by providing injections of cheap funding for banks ahead of the vote.
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