They had the desired effect moves by the Swiss National Bank (SNB) and today the franc slipped to its lowest levels in the last week against the euro and the dollar. On 10 August the Swiss currency reached a record high with the euro at 1,0255 and the day before with the dollar at 0,7062. Today the franc touched lows of 1,0921 against the European currency and 0,7687 against the US.
For one of the most stable currencies in the world, the approximately 5,4% devaluation against the other two currencies is a remarkable achievement. The credit – or demerit, depending on your point of view – goes to the national bank which has taken various measures to curb the excessive appreciation of the franc.
In particular, the institute declared that it "will massively increase liquidity on the franc-denominated market". Furthermore, it is not excluded that in the afternoon it may even decide to peg the franc to the euro.
In recent months, the Swiss currency has appreciated by more than 18% against the euro and around 25% against the dollar.
The strengthening of the franc in recent years also had strong repercussions in Switzerland Poland, where most mortgages are denominated in the Swiss currency, and in Hungary, where most of the public debt has to be denominated in this currency.
