The Swiss National Bank (SNB) couples the Swiss franc to the euro. She put it sets a minimum price: implies that a future cost at least € 1.20 francs. A lower rate will no longer be tolerated from now. "The National Bank is the minimum price set by the full consequences and is willing to buy unlimited foreign currency", said the SNB. Target "a significant and lasting weakening of the franc" is.
Euro becomes more expensive by leaps and bounds
After the decision, the SNB € more expensive compared to the Swiss franc.
The euro rose in price by leaps and bounds after the announcement by the Swiss National Bank. Temporarily it cost more than 1.21 francs and then moved to 1.20 francs. Before the announcement of the SNB on the currency markets only 1.1250 francs per euro had been paid.
Behind this decision is the strength of the franc against the euro. Especially in connection with the debt crisis in countries of the euro area, the Swiss currency had gained in recent months, much of their value. The more expensive exports many of Swiss companies, the economy weakens and increases the risk of rising unemployment. According to a study by the Federation of the Swiss economy is 20 percent of export companies are afraid because of the soaring francs for their existence.
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Strong franc threatens Swiss economy
"The current massive overvaluation of the Swiss franc is an acute threat to the Swiss economy" and entails the "risk of deflation," said the National Bank. If necessary, the SNB would take further action. The National Bank made it clear that she holds the Franks also evaluated at a rate of 1.20 against the euro for high and relies on a significant weakening of the country's own currency.
The Swiss National Bank wants to help with the decision of the state's economy.
The Swiss franc is valued for its stability as a plant and laid since the beginning of a nine percent against the euro and 14 percent against the dollar. The debt crisis in the euro zone and in the United States had driven the investors in droves to the perceived safe investments such as the Swiss currency, the Japanese yen and gold. The SNB had to fight against the strong Swiss franc in early August lowered its key interest rate a surprise to virtually zero.
No coordination with the European Central Bank
For the step for the establishment of an exchange rate target between the franc and euro, the SNB decided to appear on their own. The European Central Bank (ECB) announced that it was withdrawing the decision by the SNB noted. The Swiss central bank had taken this step in their "own responsibility".
Euro becomes more expensive by leaps and bounds
After the decision, the SNB € more expensive compared to the Swiss franc.
The euro rose in price by leaps and bounds after the announcement by the Swiss National Bank. Temporarily it cost more than 1.21 francs and then moved to 1.20 francs. Before the announcement of the SNB on the currency markets only 1.1250 francs per euro had been paid.
Behind this decision is the strength of the franc against the euro. Especially in connection with the debt crisis in countries of the euro area, the Swiss currency had gained in recent months, much of their value. The more expensive exports many of Swiss companies, the economy weakens and increases the risk of rising unemployment. According to a study by the Federation of the Swiss economy is 20 percent of export companies are afraid because of the soaring francs for their existence.
currency converter,
CHF/EUR Exchange Table,
CHF/EUR Graph Chart,
CHF/EUR Performance,
CHF/EUR Appreciation,
CHF/EUR Depreciation,
CHF/EUR Investment Calculator,
CHF/EUR Metal Prices
Strong franc threatens Swiss economy
"The current massive overvaluation of the Swiss franc is an acute threat to the Swiss economy" and entails the "risk of deflation," said the National Bank. If necessary, the SNB would take further action. The National Bank made it clear that she holds the Franks also evaluated at a rate of 1.20 against the euro for high and relies on a significant weakening of the country's own currency.
The Swiss National Bank wants to help with the decision of the state's economy.
The Swiss franc is valued for its stability as a plant and laid since the beginning of a nine percent against the euro and 14 percent against the dollar. The debt crisis in the euro zone and in the United States had driven the investors in droves to the perceived safe investments such as the Swiss currency, the Japanese yen and gold. The SNB had to fight against the strong Swiss franc in early August lowered its key interest rate a surprise to virtually zero.
No coordination with the European Central Bank
For the step for the establishment of an exchange rate target between the franc and euro, the SNB decided to appear on their own. The European Central Bank (ECB) announced that it was withdrawing the decision by the SNB noted. The Swiss central bank had taken this step in their "own responsibility".
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