Bookmark and Share

Swiss Central Bank surrenders against Economic Forces in fight to weaken the Swiss Franc

2 Comment

The Swiss Central Bank has added almost 50% to its foreign currency reserves in the month of May 2010 alone to prevent the Swiss Franc from appreciating.However this massive increase has not stemmed the inexorable fall of the Euro against the Franc.The Euro is now trading at an all time record against the Swiss France which is perceived as a “safe currency” by the Market.SNB has tried to manipulate the currency by buying up Euros in large quantities but apparently it is giving up in this vain fight against the market forces.Currencies have become extremely volatile in the aftermath of the Global Financial Crisis with the Euro depreciating almost 20% against the DollarĀ  in a short span of 6 months disrupting the normal operations of companies worldwide.The Swiss companies are also under pressure from the sharp appreciation of the Franc against the Euro.Every nation is trying to Export their Way out of Trouble as they face weakening domestic demand.The only certainty in this Sovereign Debt Crisis is the increase in uncertainty with regarde to Currencies and Markets

Swiss Franc Hits New Record High; No SNB Opposition Seen – MarketWatch

The Swiss franc leapt to a new record high against the euro Tuesday, with no sign yet of intervention by the Swiss National Bank to push it back down. The euro hit CHF1.3785 in London trading hours, below its previous record low of CHF1.3850 seen in New York Monday. The single currency has now declined by over 6% against the franc so far this year. The lack of any obvious reaction from the SNB so far hints that it may be stepping back from its franc-weakening program and allowing the currency to climb.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

2 Responses so far | Have Your Say!

Trackbacks/Pingbacks