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Swiss central ready to intervene in the foreign exchange market
Vice Chairman of the Swiss central bank, said in an interview Tuesday that the bank is ready to intervene in the foreign exchange market to ease monetary policy after it abandoned the ceiling set by the trading franc earlier this month.
Surprised markets bank on 15 January parting ceiling set three years ago for the price of the franc against the euro, a policy that later said that defending in the current month alone, it would cost the bank 100 billion Swiss francs (110.84 billion dollars) if it continues it.
Said Jean-Pierre Danthine told Swiss daily Tagys Onziger 'abandonment of the roof means tightening of monetary policy. We accept this, but to a certain extent. We are ready in terms of basic factors to intervene in the foreign exchange market. '
Danthine said that it will take some time to balance the foreign exchange markets, but declined to give specific levels and said that the central bank is not watching the exchange rate with the euro, but only with the dollar as well.
In response to a question about a new strategy for the currency Danthine said that linking the price krone Euro Denmark policy will not be suitable for Switzerland but the system in Singapore which allows the Singapore dollar to rise or fall against the currencies of its major trading partners in a specified range unspoken 'deserves careful study.'
He defended the SNB's decision to abandon trading franc ceiling, saying that such a policy risks to the economy began to outweigh the advantages
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