The Swiss franc is still too strong and risks seriously destabilizing the country's prices and exports. For this reason, the Central Bank of Zurich announced today the use of new measures to curb the run of its currency, considered a safe haven asset and therefore much in demand by investors in these weeks of international crisis. After having already intervened last week to the same aim, the Swiss institute now plans to further increase liquidity on the money market and currency swaps. Previously it had instead cut interest rates to the level “as close to zero as possible”.
The massive “overvaluation of the franc is a threat to the development of the Swiss economy – reads a note from the Central Bank – and has further increased the risks on price stability”. The institute has specified that it will continue to monitor market trends.
