The Swiss franc is too strong and doubts remain in play regarding the euro zone continuing to adhere to a currency gap with the central bank of Switzerland, an official with the governing board of the Swiss National Bank said during an interview.
Aargauer Zeitung, a Swiss publication, interviewed Fritz Zurbruegg, Bloomberg reports. The official with the central bank that has worked to help exporters and stave off threats of deflation since September 2011 pointed to the second half of last year as to when they had to implement stimulus policy.
“Particularly in the second and third quarter of 2012, we had to intervene heavily to defend the ceiling,” the official told the news source, according to Bloomberg. “The expansion of the balance sheet is a result of this policy. But that was inevitable in order to combat the massive over-valuation of the Swiss franc.”
In September 2011, the Swiss franc approached parity with the common currency of the European Union. But after the SNB set a cap, the franc lost value during the euro debt crisis’ attacks against regional banks, markets and public finance systems.
The Swiss franc served as a storage haven while the sovereign debt crisis was posing dangers for three-plus years, according to Agence France-Presse.
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