The Central Bank of Switzerland wants to weaken the domestic currency in the long run, which, according to us, is still greatly overestimated by what the main Swiss exporter suffers. The bank sent a volume of financial reserves, which should dream of the attractiveness of the currency. It will start buying sttn bonds.
“The measures taken by the Central Bank against the growth of the Swiss franc so far are known. However, the Swiss franc remains massively overvalued, ”said the central bank. In order to reach the new duty, it will move after foreign exchange swaps.
The central bank reduced the base year to zero and last week announced that it would use foreign exchange swaps to increase the franc’s liquidity faster. If necessary, the central bank is ready to take further action to help the exchange rate.
The Swiss franc is considered a stable currency, which is better offsets in the financial markets than the currencies of other countries. The high interest in buying the Swiss franc is especially evident in recent weeks, when stock prices fell. Frank thus pushed the historical highs against both the euro and the dollar. The most extra for this is the number of exporters, or the price of their goods abroad decreases when switching back to francs.