Posted on 08/03/2011 2:14:27 AM PDT by bruinbirdman
09:30 ZURICH, SWITZERLAND – The Swiss National Bank reacted Wednesday morning 3 August to the rapid rise of the Swiss franc, calling it “massively overvalued” and saying it will “very significantly increase the supply of liquidity to the Swiss franc money market over the next few days.”
“This current strength of the Swiss franc is threatening the development of the economy and increasing the downside risks to price stability in Switzerland. The SNB will not tolerate a continual tightening of monetary conditions and is therefore taking measures against the strong Swiss franc,” the central bank noted in a statement.
Specifically, the bank’s actions include: •aiming for a three-month Libor as close to zero as possible, narrowing the target range for the three-month Libor from 0.00–0.75% to 0.00–0.25% •very significantly increase the supply of liquidity to the Swiss franc money market over the next few days: expand banks’ sight deposits at the SNB from currently around CHF30 billion to CHF80 billion. •with immediate effect, the SNB will no longer renew repos and SNB Bills that fall due and will repurchase outstanding SNB Bills, until the desired level of sight deposits has been reached.
The SNB says it is watching markets closely and will intervene again if necessary, noting that the combination of a worsening global economic outlook and sharp appreciation of the Swiss franc during the last few weeks has resulted in a substantial deterioration of the outlook for the Swiss economy.
UK couldn't do it against Soros. That experience showed central banks the futility of trying against a FX market that trades trillions a day. Japanese couldn't do when yen went below 82.
ChiComs can manipulate yawns because they are not convert able.
Even OPEC has a problem manipulating oil prices.
yitbos
OK, Champ.
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