Posts Tagged ‘Cantons’

Notes From Underground: The Swiss are yodeling about the strength of the FRANC; Brazil wants the capital markets to get REAL

January 10, 2011

There were a few stories today about the SWISS complaining about the negative impact the FRANC‘s record strength is having on the economy. Both Bloomberg and the Financial Times ran articles citing Swiss policy makers and SNB officials raising the issue of currency strength and the possible need for intervention to halt the FRANC‘s rise. In an article by Haig Simonian in the FT, he details the high cost of SNB intervention on the CANTONS. Under Swiss law, the central bank disperses a share of its annual gains to the different CANTONS to help them meet their budgets. This year, SNB has a sizable loss of 21 billion FRANCS through November from foreign exchange and an overall loss of 8.5 billion FRANCS because of windfall gains from GOLD and other trading.