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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (10631)	3/17/2023 10:23:03 AM
From: Elroy Jetson	Respond to of 13771

The Swiss Franc has been overvalued for many decades making it difficult for Switzerland to export products and services. In order to solve this problem Switzerland took itself off the gold standard and sold-off huge stocks of gold. When this did not diminish the international mania for owning Swiss Francs, the Swiss National Bank imposed negative interest rates on foreign-owned bank accounts. Still faced with an over-valued currency, due to irrational international fans of the Swiss Franc, the Swiss National Bank has spent decades printing Swiss Francs in order to buy Trillions of Euros to depress the value of the Swiss Franc. This has left the Swiss National Bank with massive Euro deposits earning interest or invested in stock markets accumulating decades worth of appreciation. Swiss companies like Nestle have borrowed money from UBS in order to purchase food and beverage companies around the world creating a very profitable company, all because Nestle couldn't make money exporting Swiss food and drinks. Switzerland would love to see the value of their currency fall, but nothing has gone right for them in this regard. The Swiss Franc continues to rise in value against the Euro and has maintained its value against the US Dollar. While this has created paper losses on the Swiss National Bank's massive hoard of Euros, these "losses" mean absolutely nothing to them as their original cost to print Swiss Francs to buy Euros was zero. What bothers them is the Euro cost of Swiss products continues to rise, making them less competitive in Europe. Switzerland will continue to do what ever it takes to depress the value of the Swiss Franc so the Swiss economy can function normally.