Indian Government fails to Rein in Fossil Fuel Subsidies despite Favorable Political Position
June 8, 2010Is Bulgaria guilty of forging Public Accounts like Greece and Hungary?
June 8, 2010The 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 Dollar 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.
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[…] The Swiss Central Bank has been unsuccessfully trying to control the appreciation of the Swiss Franc which has been going up against the Euro due to its perception as a safe haven currency.While the Swiss Central Bank is facing big losses on its Euro holdings,Hungary has become a surprise victim of the Swiss France strength.More than 80% of the foreign currency loans in Hungary are denominated in Swiss France.With Hungary’s local currency Forint depreciating by 27% against the France in 2010 alone,this implies that a Hungarian householder with a Franc denominated loan faces a 27% bigger loan than he did last year.Naturally this had led to an increase in debt defaults and a slowing of Hungary’s Economy.Note Hungary has been in the news for lying about its public accounts like Greece. […]
[…] kindly by the US which is currently investigating China for being a Currency Manipulator. With the Swiss and Japan now openly intervening in the Forex Market to devalue their currencies,it seems hard to brand China as the Sole Currency […]