SNB's Danthine: franc cap a necessity
ZURICH, June 28 |
ZURICH, June 28 (Reuters) - The cap the Swiss National Bank imposed on the soaring franc is essential for the economy, its vice chairman Jean-Pierre Danthine said on Thursday.
"We have had a rough road in Switzerland since the onset of the financial and economic crisis with strong appreciation of the Swiss franc that has constituted major challenge and at times a major threat to the Swiss economy," Danthine said.
"The minimum exchange rate is an absolute necessity for the Swiss economy," he said in a presentation exploring other international experiences with attempts to control exchange rates.
To shield the economy from deflation and a recession, the SNB set a floor of 1.20 francs per euro last September, after safe-haven buyers anxious about the euro zone's debt crisis had nearly pushed it to parity with the common currency. (Reporting by Emma Thomasson)
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