The Swiss franc is no longer tied rigidly to the euro at the rate of 1: 1.2

The Swiss National Bank lifted the restrictions on the exchange rate of the Swiss franc against the euro. This decision has provoked the collapse of the world's major currencies against the franc. Statement published on the National Bank of Switzerland reported that the bank removes earlier restrictions of foreign exchange gain of 1.2000 Swiss francs to 1 euro. In addition, the interest rate was lowered on deposit accounts with the National Bank minus 0.25% to minus 0.75%.

Existed restriction was due to the length of time when it was extremely overpriced value of the Swiss franc due to the high volatility in the financial markets, as explained in the National Bank of Switzerland. This gave the national economy insurance against possible shocks during the crisis. At present, the franc took a weaker position in relation to the US dollar, which, according to the financial institution has made an unnecessary restriction of the franc against the euro in the future.

However, the removal of restrictions led to a sharp fall in the dollar and the euro against the Swiss franc. Moreover, it should be noted that the exchange rate difference with the euro in the franc remained virtually unchanged over the past year. However, immediately after the announcement of the lifting of restrictions, the euro fell to 0.9850 per franc, or 1.02 francs per euro, and the US dollar was sold at 0.8624 francs. Thus, returning to the minimum that existed three years ago.

World currencies become cheaper against the Swiss franc

UBS bank experts believe that the measures taken by the regulator should have a negative impact on the economy, as this will reduce the amount of 5 billion euro profit from Swiss exports.

The Swiss National Bank also lowered the three-month Libor range from -0.75-0.25 to -1.25-0.75%. Thus, all of a sudden the period was interrupted during the support of the national currency, which lasted from the fall of 2011, - stated Forex Trend analysts (rated among the TOP Forex Brokers Masterforex-V World Academy http://www.masterforex-v.com/).