Having already 'dropped' over one trillion dollars in 2017 to keep reality at bay, it appears the world's central bankers are not about to let a French election mishap spoil the illusion.
Just as central bankers gathered at The BIS' Basel Tower just says before the Brexit vote, so judging by the statements today, the monetary manipulators stand ready to rescue markets once again should the first round of the French election 'surprise' the 'free' markets.
Brexit's BTFD took a few days...
Trump's election BTFD took a few hours...
And given the following comments, we expect any French 'surprise' (as investors fear that a potential run-off between eurosceptic candidates Marine Le Pen and Jean-Luc Mélenchon would raise questions about France's future in the European Union, roiling financial markets and undermining depositor confidence), will be dismissed in minutes...
The European Central Bank could provide emergency cash to French banks if needed after the first round of France's presidential election on Sunday, but it doesn't expect such a move will be necessary, ECB policymaker Ewald Nowotny said on Saturday.
"If there should be problems for specific French banks liquidity-wise, then the ECB has the ... ELA, Emergency Liquidity Assistance, but we don't expect of course any special movements," Nowotny, who is Austria's central bank governor, told reporters at the IMF and World Bank spring meetings.
The Swiss National Bank stands ready to defend the franc with interest-rate cuts and market interventions if investors pile into the haven currency in response to the French elections.
"We hope that a reasonable candidate can win -- somebody who is in favor of free markets -- but we cannot exclude that there will be more pressure on the Swiss franc,” Thomas Jordan said in an interview with Bloomberg Television in Washington, where he attended the International Monetary Fund spring meetings. “But as you know we also have our instruments to react to such a situation.”
“We have more leverage on” interest rates, “and we of course have our willingness to intervene if necessary on the foreign-exchange market,” Jordan said. The SNB will “observe the situation very closely.”
“The central bank should be ready for any shocks that should materialize” after the French election, Bank of Italy Governor Ignazio Visco says in Washington.
Tools that should be used include liquidity provision and cheap refinancing when needed.
“Intervening very quickly is really very easy now given the instruments we have.”
“But as we have seen in similar cases, no need has really been observed. And the reason is that all market participants know that these instruments are there to be used.”
Or roughly translated - "All clear" to BTFD on Sunday night.