Hey Switzerland, what the hell took ya so long?

View Comments

So the Swiss banks are finally charging negative interest rates on large CHF deposits. This begs the question, why did it take you five years to figure this one out? Hello!

A much more effective deterrent than the silly, destabilizing and expensive EUR/CHF peg.


All|Americas|Market Rumors|Regions


Jamie Coleman


  1. Northern banks must do the same. Put a negative interest rate of 3% per year to all accounts. To push money back to south Europe

  2. The question is, when will the SNB do it and make it official to give us all the rally we’ve been waiting for? Sometime between now and next week’s meeting?

  3. “…Much more effective deterrent than the silly, destabilizing and expensive EUR/CHF peg.”

    The Swiss peg was hugely successful.
    And was anything but “expensive.

  4. Nomura analyst thinks this is setting up a good move to fade. This would require bigger cahonies than I can muster at the moment.. what’s your thoughts Jamie? Continuation or fade?

  5. SNB’s reserves have ballooned forcing Switzerland to assume untold liability. Given the choice between negative rates and taking your-amount of risk, negative rates is by far the more logical policy.

  6. Maybe these banks needed the liquidity support? That’s functionally what it was; though of course politically they can deny they received the support….a twofer!

  7. To be honest, I have no feel for how short the market is of EUR/CHF at the moment. I don’t have a really informed opinion at the moment I’m afraid, sorry.

  8. If the SNB had gone even 100bps negative then it would have made bugger-all difference to the strength of the CHF. In June this year it would have been well inside parity vs EUR, no question; and it would have plunged Switzerland into a deep recession.
    It takes a serious amount of denial to not realise how effective the Peg has been.


© Copyright 2015 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.