The Swiss National Bank (SNB) has discontinued the minimum exchange rate of 1.20 per euro on January 15, 2015. The Swiss has appreciated against the euro and the U.S. dollar.
The SNB President Thomas Jordan said that the CHF1.20 exchange rate floor has been discontinued because it was unsustainable. But he added that the SNB will intervene in the foreign exchange markets if required.
The Swiss National Bank (SNB) Vice President Jean-Pierre Danthine said in an interview with the Tages-Anzeiger newspaper published on January 27 that the central bank is prepared to intervene in markets. The Swiss franc has started to depreciate a day earlier.
The currency pair EURCHF increased this week from CHF0.9782 to CHF1.0521. That indicates that the SNB has intervened in the foreign exchange markets.
According to the SNB's monetary policy data for the week ending 23 January 2015, the amount of cash commercial banks hold with the SNB rose, and showed the biggest weekly increase since July 2013. That is another evidence that the SNB might intervene in markets.
It's possible that we might see the next EURCHF exchange floor: perhaps CHF1.0500 or CHF1.1000.
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