For the best part of six years, the Swiss National Bank has been trying to stem the strength of the Swiss franc, targeting the exchange rate against the euro to help the small, open, export-oriented nation. If European Central Bank president Mario Draghi said he would do “whatever it takes” to save the euro, the SNB has put its money where its mouth is. From taking its key interest rate to minus 75 basis points, it has intervened in the currency market so much that its foreign reserves have ballooned to 670 billion francs (US$688.5 billion) from 300 billion. With the SNB undeterred by the cost, this fortnight saw a further sudden 5.5 per cent devaluation in the franc, which was probably part of an A, B, C-type correction with a target at 1.206 francs.
