What was Switzerland’s currency cap?

  • Up until 15 Jan 2015, Switzerland maintained a currency ceiling against the euro (in place since 2011).
  • This would stop the Swiss franc from appreciating too much.
  • In times of strong franc demand, the Swiss central bank would let the franc appreciate to a point, and then stop the appreciation, by selling as many francs as the market wanted (and thereby accumulating foreign currency reserves).
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