The Swiss National Bank said on Thursday that he was abandoning the policy, which established the limit of the depreciation of the euro against the franc. Foreign exchange markets was a seismic event, and the decision of Thomas Jordan was criticized by economists and analysts in many countries.
– Frank is clearly overvalued against the dollar and the euro – Jordan said Saturday in an interview with two Swiss dailies – ” Le Temps “and” Neue Zürcher Zeitung “. According to the head of the SNB ‘markets for some time come back into balance. “On Friday
meridian franc 0.981 euro cost in dollars paid for the 85.22 cents. Quotations Swiss currency jumped after Thursday’s decision by more than 20 percent. The Swiss stock market fell by about 9 percent. Initially, just after the announcement of the decision of the bank has lost 12 percent. within 20 minutes.
Jordan stressed, however, that the bank did not return to the policy of keeping the exchange rate peg the franc to the euro, because it required too many interventions. SNB was buying euros en masse every time when its value relative to the Swiss franc fell.
Some analysts believe that the central bank no longer defend the franc, he bowed to political pressure. In November in Switzerland held a large campaign to force the SNB to hold 20 percent. reserves in gold. Initiative was rejected in a referendum, however, remained aware that the creation of such provisions would impede the maintenance franc at the planned level.
Other experts agree that the bank warned activities of the European Central Bank, which is about to begin quantitative easing (bond purchases on the secondary market countries ), which will lead to the weakening of the euro, and this would require the SNB intervention to maintain the exchange rate. Another group
analysts believe that the SNB feared having to further intervene in a situ ation where investors withdraw from riskier markets such as Russia.
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