CHF now looks to ‘Vollgeld’ – Danske Bank

Jakob Christensen, Senior Analyst at Danske Bank, gives his views on the upcoming referendum in Switzerland and CHF.

Key Quotes

“The 10 June Swiss referendum on ‘Vollgeld’ (i.e. sovereign money) has so far moved under the radar”.

“Recent polls suggest a majority moving in favour of a ‘no’ to the initiative, but we stress that the sheer scale of the initiative, which essentially entails ending the fractional reserve banking system, means it is worth keeping an eye on”.

“In case of a ‘yes’, it would have wide-ranging implications for the Swiss economy and be likely to postpone SNB ‘policy normalisation’, i.e. be CHF negative. Even more importantly, a ‘yes’ could spark a renewed push for a similar move elsewhere in Europe”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.