Swiss Franc: Not A Peg For All Seasons
August 13, 2012
I am adding several items to OMS this morning as I work through my reading. Good day for a Monday. Here, Anatole K gives us an inside update on the Swiss Central Bank problems. Namely, they are building in huge losses And getting local political heat. "The Swiss National Bank has constrained the appreciation of the franc, but incurred spill-over effects. The result of liquid funds pouring into safe- haven Switzerland has been rapid credit growth and a surge in property prices. But the question we increasingly hear asked is whether the SNB will stick with the de facto peg since the cost of doing so keeps increasing."