SNB Slaps Charge On Swiss Franc Stockpilers

SNB Slaps Charge On Swiss Franc Stockpilers by Matthew Allen, swissinfo.ch

The growing allure of the Swiss Franc for international investors has forced the Swiss National Bank (SNB) to introduce negative interest rates as it battles to defend its CHF1.20 exchange rate ceiling with the euro.

Falling oil prices, the Russian rouble crash and an anticipated European Central Bank (ECB) spending spree have increased the franc’s appeal as a safe haven currency, putting pressure on the SNB’s policy of containing its appreciation.

The franc-euro exchange rate has been hovering in the danger zone of around CHF1.2008 this week, the closest it has come to breaking through the ceiling for several months. It marks one of the most critical moments for...