The Swiss central bank imposed a ceiling on the francâ€™s exchange rate for the first time in more than three decades and pledged to defend the target with the â€œutmost determination.â€
The Swiss National Bank is â€œaiming for a substantial and sustained weakening of the franc,â€ the Zurich-based bank said in an e-mailed statement today. â€œWith immediate effect, it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francsâ€ and â€œis prepared to buy foreign currency in unlimited quantities.â€
Is Germany bailing on the bailouts of PIIGS? Merkel going to lose tomorrow? Why announce 'unlimited' purchase of euros? I think this is bigger than keeping Swiss exports flowing out. Very weird...