The Swiss have devaluated! Not the CHF but the value of the trustworthyness of the Swiss National Bank (SNB) has declined dramatically.
Like other national banks the SNB issues press releases from time to time.
During 2009 the SNB in several press releases underlined, that “ ... the SNB will continue to act decisively to prevent any strengthening in the Swiss franc against the euro.”
However during the past months and especially in the latest weeks, the CHF has been strengthened against the EUR up to a level, that is historically high, without any actions from the SNB to prevent this.
So where does this leave the SNB? Certainly whatever the SNB may be expressing in the future does not hold any particular value. The SNB has indeed by lack of “decisive action” devaluated their own “currency” – the value of their words.
Like other national banks the SNB issues press releases from time to time.
During 2009 the SNB in several press releases underlined, that “ ... the SNB will continue to act decisively to prevent any strengthening in the Swiss franc against the euro.”
However during the past months and especially in the latest weeks, the CHF has been strengthened against the EUR up to a level, that is historically high, without any actions from the SNB to prevent this.
So where does this leave the SNB? Certainly whatever the SNB may be expressing in the future does not hold any particular value. The SNB has indeed by lack of “decisive action” devaluated their own “currency” – the value of their words.