The Swiss National Bank (SNB) has flooded another SFr80 billion ($100 billion) into the markets as it intensifies its efforts to weaken the franc.
The central bank increased its supply of francs to SFr200 billion on Wednesday, adding to the SFr90 billion of extra liquidity it committed itself to providing in the last two weeks.
The safe haven currency has inexorably increased in value since the financial sector meltdown as investors look for less risky places to stash their money. The unresolved debt crises in Europe and the United States have added to the franc’s allure.
Swiss exporters and the domestic tourism industry have both suffered as the price of goods manufactured in Switzerland and the cost of visiting the country have sky rocketed.
The SNB’s latest measures to curb the rise of the franc have met with some success. A week ago, the franc was fast approaching parity with the euro and a record high of SFr0.70 against the dollar.
On Wednesday morning the franc stood at SFr1.12 against the euro and SFr0.78 against the greenback.
The slight reversal of the franc’s rise was also boosted by recent comments from SNB officials in the Swiss media, saying that other measures were still on the table.
It has been speculated that these measures could include pegging the franc to the euro or introducing negative interest rates.
swissinfo.ch and agencies