swiss franc

SNB relieved From Pressure On Negative Rates Thanks to ECB

UBS | The Swiss National Bank (SNB) reassessed its monetary stance at its quarterly March meeting today. After the European Central Bank (ECB) a week ago lowered its negative deposit rate for bank reserves by only 10 basis points to -0.40% and the main refinancing rate by 5 basis points to 0.00%, it became clear that the negative interest rate differential disfavouring the franc would not erode significantly.

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Monetizing tax revenues: A new calling for central banks?

By Benjamin Cole via HistorinhasThe Swiss National Bank gave up trying to peg the Swiss franc to the Euro, and let the Swiss currency shoot to the moon. Some bankers were squeamish about a large SNB balance sheet, which the bank was garnering by printing Swiss francs and buying non-Swiss bonds.

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Swiss franc shocks Forex

MADRID | By J.P. Marín ArreseThe Swiss National Bank decision to scrap the € 1.20 ceiling on its currency on Thursday caught investors by surprise. The ensuing steep appreciation, more than 30%, has also bewildered the Swiss monetary authorities. Shock waves hitting the Euro have sent its quote to fresh lows against the dollar, plunging the Forex into utter disarray. Furthermore, as short-term deposits will bear negative interest rates the key financial sector is bound to face rough times.   

swiss franc

SNB: And this is only the beginning

MADRID | The Corner | Maximum uncertainty shook the global markets today, after the Swiss National Bank unexpected double move of removing the controverted minimum exchange rate to the EUR of 1.20 and lowering interest rates to –0.75%. Volatility will continue in the coming weeks “as unhedged Swiss companies may start hedging and the SNB may come up with additional measures like enforcing the use of negative interest rates to strengthen other currencies against the CHF,” explained UBP’s Swiss equities expert Martin Moeller. Some analysts believe the strategy might be too radical and “counterproductive for the ECB.” Stocks in Switzerland fell about 10 percent, while broader European indexes rose modestly.