The Swiss National Bank (SNB) provided 120 billion Swiss francs (US$152 billion) to the Swiss banking system to increase the currency supply in a bid to ease the rapidly climbing franc. The Swiss franc continues to grow in popularity as a safe haven alternative to the U.S. dollar and the euro. Earlier in the week the SNB even raised the possibility of pegging the franc to the euro but the latest action casts doubt on whether the SNB will go in this direction.
“The market was expecting far more radical measures from the SNB, like targeting a specific exchange rate. This is more of the same, and is inadequate in an environment where investors are seeking safe havens,” noted Lena Komileva of Brown Brothers Harriman.
Source: BBC News
