The FT reports that Switzerland is ‘new China’ in currencies
Chatter that the SNB was buying 3 billion francs worth of euros per day.
“The picture is one of a central bank that’s not coping with how much money is coming in,” said Kit Juckes, foreign currency analyst at Société Générale.
Analysts also note that other central banks, like Sweden, may have to start setting rates with the SNB in mind.
No country wants a strong currency right now. I wonder if other FX reserve managers may soon take reciprocal action, buying an equal amount of CHF to counter-balance growing Swiss reserves.