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Swiss Franc Plunges On FinMin "Minimum Exchange Rate" Comment

Just what are the Swiss up to...

  • *SWISS FINANCE MINISTER WANTS NEW MINIMUM EXCHANGE RATE: HZ

A confidential paper signed by Swiss Finance Minister Eveline Widmer-Schlumpf, discussed in government last week, said that new minimum exchange rate should be "considered," Handelszeitung reports in a prerelease of an article to be published Thursday.

 

As Bloomberg adds,

Paper, also backed by Economy Minister Johann Schneider-Ammann, suggests that Swiss govt should have more influence on SNB decision making via regular and more intensive consultations with the central bank: HZ

And Swissy dumped...

 

Full Statement pre-release (via Google Translate):

A new minimum exchange rate of the euro compared to the franc should be "considered". And: The state government has to take with regelmaessigeren and intensified debates more gain influence on the decisions of the Swiss National Bank (SNB). Be explicitly "target 'must' to coordinate the money economy and the general economic policy content and communication." These controversial claims, signed by Finance Minister Eveline Widmer-Schlumpf, are in a confidential discussion paper, which has led in the Bundesrat last week to controversial discussions. About it reports the "commercial paper" in its morning edition.

 

Topic of discussion were proposals for possible policy responses to the Frankenstaerke. While the Federal Council has not yet approved the paper, but the impact and march direction is outlined: the high politics in Bern, dissatisfied with the by surprising cancellation of guaranteed exchange rate of CHF minimal 1.20 to the euro, will publicly demonstrate power and win back power to act. The said committee jointly presented by Widmer-Schlumpf and Economy Minister Johann Schneider-Ammann analysis states clearly that neither fiscal nor economic or organizational measures are likely to influence decisively the new, for the economy as a whole been considered a difficult situation or to overcome all. The central factor for the development of the Swiss economy, concluded the economists of the covenant, is and remains the monetary policy of the SNB.

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