Monday, September 19, 2011

Switzerland Enforces Minimum Exchange Rate




Switzerland's currency has risen by 43% against the euro between the start of 2010 and mid-August this year. The Swiss National Bank, which conducts Switzerland’s monetary policy as an independent central bank, announced that it will enforce a minimum exchange rate of CHF 1.20 to the Euro. The Swiss National Bank said that even at a rate of CHF 1.20 per euro, the Swiss franc is still high and should continue to weaken over time. If the economic outlook and deflationary risks so require, the SNB will take further measures.