September 24, 2018 / 2:00 PM / 3 months ago

ECB's Draghi sees 'muted' impact to euro zone from Brexit

European Central Bank (ECB) President Mario Draghi testifies before the European Parliament's Economic and Monetary Affairs Committee in Brussels, Belgium September 24, 2018. REUTERS/Francois Lenoir

BRUSSELS (Reuters) - The European Central Bank sees a muted impact from Brexit on the euro zone’s economy and financial markets, with the clearing of financial contracts the biggest area of concern, the ECB’s President Mario Draghi said on Monday.

“By and large, our estimates show that, on the real side of the negotiation, the impact should be, in the aggregate, quite muted,” Draghi told the European Parliament.

“On the financial side, the impact we expect should not be significant, with one exception: in some areas of central clearing of derivatives, where if there is a sudden event, (an) unprepared hard Brexit of the sharpest kind, we have to see how the many contractual positions are going to be regulated after that.”

Reporting by Francesco Canepa; Editing by Robin Pomeroy

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