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Was SNB unresponsible after all ?
https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=4059		 Page 1 of 1
Author:  niepce [ Fri Jan 16, 2015 5:18 pm ]
Post subject:  Was SNB unresponsible after all ?
So, what's your opinion ?
Author:  Ralph114 [ Thu Jan 22, 2015 4:20 pm ]
Post subject:  Was SNB unresponsible after all ?
Not at all!!! Think a minute, when they implemented the fix price of 1.20 they just supported every Swiss company that exports, yet everybody that pays taxes had to subsidize for that export.
Not sustainable for a small country like Switzerland (8 million). Actually amazing how long they where able to pull it off to keep 1.20. They have a show, (Rundschau, Swiss TV) one week before the drop of the fixed price, where SNB chief Thomas Jordan spoke with the reporter about the problem and the reporter was asking then already if Jordan wants to drop the fix price and Jordan's face was pretty clear of the intent, yet his words where of course neutral. My conclusion: Sorry, anything (good or bad) will come to an end one day :D Happy Trading Ralph
Author:  bubo [ Fri Jan 23, 2015 12:40 am ]
Post subject:  Was SNB unresponsible after all ?
The SNB actually made billions by keeping the CHF lower. Capping your currency from rising is easier than injecting money to buy your currency to make it stronger.

But there are still high costs to tightly regulate a free market, and their rationale was that waiting longer would increase the cost. There were some good articles in the Swiss newspaper NZZ, comparing the decision to 'An End with Pain is better than Pain without an End'. The SNB goal is to get similar but healthier results by adjusting interest rates.

To prevent insider trading or massive speculation with even more negative results, such a move has to be kept secret, there is no way around it. Trying to 'prepare' the public specifically is not really an option, while in general the SNB always maintained that their intervention was of temporary nature - whoever got hit could have known.
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