SNB intervention in May to support its CHF 1.20 floor vs. the euro totaled $66B, or a staggering...

SNB intervention in May to support its CHF 1.20 floor vs. the euro totaled $66B, or a staggering $7M in euro purchases every single minute, writes Bruce Krasting. It's an amount that's "absolutely not" sustainable, he says, meaning the only other option is exchange controls - "if not this weekend, it will be before the end of the month."
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Comments (3)
  • Stoploss
    , contributor
    Comments (1713) | Send Message
    Give it about 45 mins.
    8 Jun 2012, 09:32 AM Reply Like
  • Humble Value Miner
    , contributor
    Comments (491) | Send Message
    why not? they exchange paper with paper, and it's quite cheap to print paper, even precise Swiss paper. In case they are unsure about what to do with the Euro they purchase, they can always sell all these Euro and purchase Dollars (or gold, or whatever)
    8 Jun 2012, 10:15 AM Reply Like
  • ghiozzodibua
    , contributor
    Comments (3) | Send Message
    yes, you are perhaps right, but if it goes-on like that for another while, the SNB will become a Euro-denominated bank...with all it implies.
    And buying gold with a depreciated Euro doesn't seems to me like the best way to use taxpayer's money...
    Sooner or later, they will be force to change strategy, as they are usually very considerated in the ways tthy use their fellow citizens' money.
    8 Jun 2012, 02:47 PM Reply Like
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