SNB Steps Up Franc Fight to Counter ‘Massive Overvaluation’
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The Swiss central bank stepped up its fight to counter what it called a “massive overvaluation” of the currency by boosting liquidity. The franc dropped.
The Swiss National Bank will “significantly increase” the supply of liquidity to the money market and expand banks’ sight deposits to 120 billion francs ($165 billion) from 80 billion francs. It will also conduct foreign-exchange swap transactions to create liquidity, a measure last used in 2008, it said in an e-mailed statement from Zurich today.