Published on Jan 18 2015 16:30
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Views: 443
| Topics: Switzerland
BERN (AFN / RTR / BLOOMBERG) – The decision by the Swiss National Bank (SNB) to unleash the value of the franc was unanimously taken by the Board. Reported that bank president Thomas Jordan Sunday in interviews in French and German media.
The move by the central bank came totally unexpected and caused turmoil in the financial markets. According to Jordan, the SNB was aware that the decision could have a big effect. ,, But the step prior announcement would have opened the door to speculators, “he pointed out.
With the support purchases of foreign currency SNB kept the value of the franc since 2012 limited to 1.20 francs per euro. After deciding who to let go of clutch ran the rate rose sharply and that ensured that include Swiss goods became more expensive on international markets. Even Switzerland is a less attractive holiday destination, tourists see the account of a trip to the Alpine firm up.
Zurich
The bank decides clearly felt on the stock exchange in Zurich, which went down sharply. Major players in the financial world, such as Citigroup, Deutsche Bank and Barclays lost hundreds of millions.
Also FXCM, a US company that provides foreign exchange investors, suffered heavy losses. Friday could continue the business operations are narrowly after taking out a large loan. The New Zealand Global Brokers and British Alpari went bankrupt.
According to Finance Minister Eveline Widmer-Schlumpf, Swiss companies a rate of approximately 1.10 francs per euro fine handle. According to her, the economy much better than when the franc was pegged to the euro.
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