Swiss National Bank is Not Ready to End Currency Cap

The Swiss National Bank said it was far from ready to end its unconventional policy measures, on Thursday, despite the U.S. Federal Reserve signaling it will soon start scaling back its asset purchasing program.

“The exit is still so far away, we have not even thought about how to communicate it,” said Swiss National Bank (SNB) Chairman Thomas Jordan in a press conference.

The SNB opted to retain its exchange rate cap on the swiss franc of 1.20 per euro on Thursday. The cap was introduced in September 2011, after safe-haven inflows caused the swiss franc to appreciate steeply, threatening the health of Swiss exporters.

“The minimum exchange rate is still absolutely necessary for Switzerland. Only with the minimum exchange rate we can have adequate monetary conditions for Switzerland,” Jordan told CNBC in Switzerland.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza