Treasury's Lew: UK vote to leave is not the making of another financial crisis

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CNBC

U.S. Treasury Secretary Jack Lew told CNBC on Monday the global market turmoil from Britain's vote to leave the European Union doesn't look like the makings of another financial crisis.

The challenge for world leaders is to provide stability and promote growth, Lew said on "Squawk Box," though he acknowledged that a British exit would be another economic headwind globally and for the United States.

All things considered, Lew said the U.S. economy has been doing "pretty well." He also expressed confidence that governments in the U.K., Europe, and the United States will be able to manage through the difficulties caused by a Brexit.

Market fallout on Brexit so far 'orderly'

While the impact in financial markets from the Brexit vote has been sharp, it's so far been orderly, Lew said. He said a U.K. vote to remain in the EU would have been best for global economies and geopolitical stability.

The currency markets are facing a "particularly volatile moment" because of imbalanced economic growth around the world, Lew said, stressing he's watching exchange rates very closely. "Unilateral action to intervene would be destabilizing," he added.

Lew reiterated he believes a stronger dollar reflects a stronger U.S. economy, and greenback strength is in the interest of the U.S.

European banks 'better equipped' than in 2008

Despite the fallout in bank stocks, which have hit British concerns particularly hard on worries about disruptions in investments, Lew said European banks are "better equipped" to deal with a Brexit than they would have been in 2008.

In prepared remarks for his Monday address of the annual meeting of the Bretton Woods Committee, Lew said: "We respect the decision of the voters in the U.K. and will work closely with London, Brussels and our international partners to ensure continued economic stability, security and prosperity in Europe and globally." The Bretton Woods Committee consists of top leaders in business, finance, academia and nonprofit organizations.

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