- SNB board member Fritz Zurbruegg
Swiss national currency is likely to depreciate in case the sovereign debt crisis in the Eurozone will be closer to solution, the Swiss National Bank said on Friday. The bank was defending its 1.2 cap, by selling francs against the basket of major currencies since Sept. 6, 2011. The franc weakened to 1.21 per single currency, easing pressure on the national bank to intervene. Moreover, the SNB is not planning to introduce further measures to protect the still weak Swiss economy.
"We believe the franc will fall to a more realistic level when euro zone uncertainties diminish," SNB board member Fritz Zurbruegg said on an interview with Swiss broadcaster RSI.
"It is above all a reason to keep the minimum exchange rate. The weak global economy and the difficult situation for sectors exposed to international competition clearly show us that it is absolutely necessary to keep the minimum exchange rate," said the bank's chairman, Thomas Jordan.
"It is not a panacea for all the problems facing the economy, and carries considerable risks," SNB board member Fritz Zurbruegg said.
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