National Bank intervenes to bring down CHF value
The Swiss National Bank has been intervening in the currency markets to bring down the value of the franc.
The currency has been strengthening on the markets as investors seek out a safe haven amid the uncertainty of trade disputes between China and the US and the potential effects of the UK crashing out of the EU without a deal.
The National Bank doesn’t give details of its interventions – but analysts believe the amount of cash the bank holds from commercial lenders is a strong signal. It’s up more than 3% at close to 600 billion.
A strong franc is bad news for exporters and the tourist industry.
Switzerland already has negative interest rates and banks could now pass those on to their very wealthy clients.