No Currency Peg Yet for the Swiss Franc as SNB Escalates

Wed, 08/17/2011 - 08:33 EDT - Seeking Alpha

By Dr. Duru: Today, the Swiss National Bank (SNB) announced it is taking additional measures to try to weaken its currency and wave off the franc’s many adoring fans. The SNB’s latest statement gets an “A” in rhetoric for amplifying its fighting words and claiming victory in one battle even as the bank warns it is prepared to escalate the war. In “Swiss National Bank intensifies measures against strong Swiss franc” the SNB announced: The measures taken thus far by the Swiss National Bank (SNB) against the strength of the Swiss franc are having an impact. Nevertheless, the Swiss franc remains massively overvalued. The SNB has therefore decided to expand again significantly the supply of liquidity to the Swiss franc money market. In so doing, it is increasing the downward pressure on money market interest rates with a view to further weakening the Swiss franc exchange rate. With immediate effect, it aims toComplete Story »

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No Currency Peg Yet for the Swiss Franc as SNB Escalates

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