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©Reuters. Switzerland considers intervening in the money market due to the weakness of the euro
Geneva, March 7 (.).- The Swiss National Bank (SNB) announced today that it could intervene in its money market in the face of the growing weakness of the euro with the Swiss franc, which are currently practically at parity after years in which the currency European had a higher value than the Helvetica.
The entity was today “prepared to intervene in the money market if necessary” in the current situation, aggravated by factors such as the war in Ukraine.
Throughout today the euro came to have less value than the Swiss franc for a few moments, something that had not occurred since 2015, although after the announcement of the Swiss central bank the European currency returned to be placed above the local.
Throughout this century, the euro has reached a maximum value of 1.6 Swiss francs in 2007, although in January 2015 it was briefly placed below the Swiss currency as a result of the country’s central bank deciding to abandon the currency float limit.
Since then, the European currency has oscillated between 1.1 and 1.2 Swiss francs, although since last year that exchange rate has been falling and has just collapsed in recent weeks, coinciding with the war crisis. in Eastern Europe.
The SNB considers that the value of the franc has grown because it is considered a “shelter value” in times of crisis such as the current one, although it also stresses that inflationary pressure in Europe, which is lower in Switzerland, has been able to influence its current revaluation.
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