Swiss Exchange Rate Floor

The snb said it would take action to make sure the d mark swiss franc exchange rate settled at a level.

Swiss exchange rate floor. The swiss national bank abolished the exchange rate floor versus the euro in january 2015. The swiss franc and an extremely high level of uncertainty on the financial markets. The swiss stock exchange is europe s 4th biggest stock exchange and one of the industry s most respected post trade service providers. As switzerland s terms of trade the ratio of export prices to import prices worsened threatening to trigger a recession in its export led economy the central bank the swiss national bank snb imposed a floor on the franc s exchange rate at 1 2 francs to the euro.

6 2011 at 12 10 p m. Between the fourth quarter of 2007 and the third quarter of 2011 the swiss real effective exchange rate appreciated by 30. In september 2011 the swiss national bank set a floor of 1 2 swiss francs to the euro. While the swiss franc is still high the overvaluation has decreased as a whole since the introduction of the minimum exchange rate.

This exceptional and temporary measure protected the swiss economy from serious harm. The swiss central bank introduced the peg in september 2011 in response to investors buying up massive amounts of the swiss franc as a safer foreign exchange alternative to the euro or the dollar. The swiss franc chf exchange rates represented on this page are live updated every minute within the forex market s trading hours of 22 00 sunday through 21 00 friday gmt. As the swiss national bank warned of the high degree of uncertainty facing the global economy the pound sterling to swiss franc exchange rate.

6 this stopped the franc appreciating but it was costly for the snb. The real effective exchange rate then depreciated by 8 over the next quarter. Use links provided. Franc plunges as swiss set euro franc floor published.