“The Swiss National Bank (SNB) intervened in support of its 1.2000 currency peg against the Euro to the tune of CHF 60 billion ($66B) in the month of May. The vast majority of this intervention occurred during European trading hours. That means that the SNB bought, on average, the equivalent of $7mm worth of Euros every minute during the month. That’s a staggering number to me.”
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Crazy. They do realize that if the euro keeps dropping, they won’t be able to reign in their outstanding monetary supply, yes? I hope there’s something here I’m not getting, like the Swiss are actually just lending Swiss francs because of derivates that aren’t being disclosed.
Otherwise, I see a day in the not too distant future where francs are rushed into Switzerland from abroad, tripling prices in a matter of weeks.