SNB sets franc floor at CHF1.20 versus euro.

Hongkong has maintained its band of 7.75-7.80/5 (not remember correctly) against usd for more than a decade successfully. So every intervention by cbanks has not failed.
 
Quote from gmst:

DT-waw, seems from your words that you got caught wrong side.

Personally, i lost 5% of my account - i had no position on swisse. This loss came from pure euro position and when i was able to cut it quickly at 1.415 - not knowing why the hell it started to move up so fast....so decided to cut loss.

ASusolvic - where did you see 1.2 bn bid ? which platform did you see that kind of bid ??? Wow!!
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EBS/ICAP.
 
Quote from gmst:

Swiss National Bank Sets Minimum Exchange Rate of 1.20 Against the Euro

From bloomberg.com


The Swiss central bank said it’s setting a minimum franc exchange rate of 1.20 against the euro and will defend the target with the “utmost determination” if needed. The Swiss National Bank is “aiming for a substantial and sustained weakening of the franc,” the Zurich-based bank said in an e-mailed statement today. “With immediate effect, it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs. The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities.”
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LOL...some serious nut-jobs over there
 
buying euros in unlimited amounts when euro is sliding into a total chaos and debt which cannot be escaped.
hmm... seems like a great deal for SNB!

swiss citizens will pay for it ultimately, and its a huge gift to few speculators who will finally manage to bring the EURCHF to parity sooner or later
 
Quote from moarla:

as waht i remember, every intervention from central banks have failled in history....
we will see
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Be lucky that they did not implement negative interest rates!!!!!!
 
Quote from DT-waw:

buying euros in unlimited amounts when euro is sliding into a total chaos and debt which cannot be escaped.
hmm... seems like a great deal for SNB!

swiss citizens will pay for it ultimately, and its a huge gift to few speculators who will finally manage to bring the EURCHF to parity sooner or later
More...

Once again: study history. There was a time when SNB actually implemented negative interest rates.

Might be worth pointing out that the SNB has imposed negative interest rates before – in 1972 it did this on deposits held by. The charge was up to 10% per quarter. It also did it again between 1977 and 1979.

More here:

http://ftalphaville.ft.com/blog/2011/08/03/641791/le-plan-negatifs-taux-dinteret/
 
I personally hope that everyone foolish trend-chaser idiot who was still short had their entire account destroyed!! :D :cool: :p


We all knew this was coming, and so only a total fool was short not long usd/chf!! :D
 
Quote from DT-waw:

buying euros in unlimited amounts when euro is sliding into a total chaos and debt which cannot be escaped.
hmm... seems like a great deal for SNB!

swiss citizens will pay for it ultimately, and its a huge gift to few speculators who will finally manage to bring the EURCHF to parity sooner or later
More...

Can you explain something to me ,because when it comes to economics i am complete n00b.
If some country wants to weaken their own currency,can they just print
money out of the thin air and use it to buy whatever (euro or maybe
some foreign lands) until chf is in enough supply to just fall to desired levels?
Or does printing CHF have some other repercussion besides weaker
currency?
 
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