Extreme remedies for Switzerland, which has had to deal with excess for weeks appreciation of the franc (considered a safe haven currency) on the euro. The Swiss central bank (SNB) announced this morning that it had established a minimum threshold for the exchange rate with the community currency: the ceiling is set at 1,20 francs.
“With immediate effect – reads a peremptory statement from the BNS – a rate of less than 1,20 francs for one euro will no longer be tolerated on the foreign exchange market. The current appreciation of the franc is at high levels and represents a serious threat to the Swiss economy”.
But that's not all. If the prospects worsen further, heading towards deflation, and Swiss exports find themselves facing too high risks, the institute threatens to "adopt additional measures".
The reaction of the European Central Bank was not long in coming. From Frankfurt they let it be known that establishing a minimum exchange rate between the franc and the euro is "a decision taken by the Swiss authorities and falls under their responsibility".
