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News Link • Economy - International

THEY DID IT: Swiss National Bank Makes Epic Intervention

This kind of floor/peg has been speculated on in recent weeks, but this is still an unbeliesvable move that will require ongoing Franc printing by the SNB to work.  
The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development.  

The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained
weakening of the Swiss franc. With immediate effect, it will no longer tolerate a EUR/CHF
exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum
rate with the utmost determination and is prepared to buy foreign currency in unlimited

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.

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