Swiss Bank sells off CHF

28 May, 2020

Yesterday, the head of the Swiss National Bank (SNB), Thomas Jordan, spoke about the state of the monetary policy in Switzerland - the main message is that now it is time to more actively regulate the region's monetary policy. This is primarily due to the fact that against the background of lower rates and negative returns worldwide, the deposit rate of 0.75% and even in such a reliable currency as CHF provokes an increase in the national currency. 

An increase in the value of the franc is detrimental to the entire economy, and especially to Swiss exporters. The immediate measures voiced by the head of the SNB are:

  • Key rate reduction at the next meeting;
  • Balance expansion (i.e. there will be more Swiss francs). 

We are waiting for sharp pulses up on these drivers.


Source  
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