Drastic action taken by Switzerland to weaken strong franc

摘要

The Swiss National Bank sent Shockwaves through the currency markets this week after deciding to set a minimum exchange rate against the euro of CHF1.20/?1. This saw the euro surge by over 9% against the Swiss franc and sterling jump by over 8% in around 10 minutes. Citing the "current massive overvaluation" of the Swiss franc and the "acute threat to the Swiss economy" that this poses, the central bank decided to take swift action, pledging to "buy foreign currencies in unlimited amounts" to enforce this minimum rate with "the utmost determination".