May 11, 2010Swiss central bank vows to fight appreciation of franc
The Swiss central bank will fight an excessive appreciation of the Swiss franc, its president Philipp Hildebrand said Tuesday as the currency reached highs against the euro.
"It is self evident that any kind of instability in the market in the short term has negative repercussions on Switzerland," he said.
"We will not allow any excessive appreciation of the franc that might generate deflation."
Concerned that a strong franc would hurt exports, the Swiss National Bank has been fighting an appreciation of the franc against the euro by buying up euros.
Swiss local media had estimated that last week alone, the central bank purchased up to 30 billion euros.
Nevertheless, the Swiss currency hit a record high of 1.40 francs against the euro last Thursday, as the European single currency slumped on Greek debt woes.
On Tuesday, one euro was trading at 1.4101 francs, well off the 1.50 franc level just six months ago.
Source: AFP Global Edition
