What’s a Central Banker to Do? The Humbling of the Swiss National Bank
|In retrospect the only surprise at the collapse of the Swiss National Bank’s euro peg should have been that it was a surprise. The history of central bank intervention in currency markets is straightforward, the tighter the attempted control, the greater the chance of failure. The problem is simple. The world changes. What was possible for the SNB in 2011, when the euro was over 1.4000 and the European debt crisis appeared to be under control, became unmanageable with the euro at 1.1800 and the continent facing recession, deflation, ECB quantitative easing and a Greek election. We will examine the historical, financial, political and currency considerations behind the most volatile day in currency trading history. Please join us for this special FX Street webinar.
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