SWISS-SNB/BANKS-REACTIONS People rush to currency exchange offices in Geneva after unexpected scrapping of the cap against the euro

Record ID: 565740

  • Title: SWISS-SNB/BANKS-REACTIONS People rush to currency exchange offices in Geneva after unexpected scrapping of the cap against the euro
  • Date: 15th January 2015
  • Summary: GENEVA, SWITZERLAND (JANUARY 15, 2015) (REUTERS) LAKE GENEVA WITH FOUNTAIN STREET IN CENTRE OF GENEVA PEOPLE QUEUING AT CURRENCY EXCHANGE OFFICE TO CHANGE THEIR SWISS FRANCS INTO EUROS CLOSE-UP OF CURRENCY EXCHANGE RATE BOARD (SOUNDBITE) (French) FRENCH MAN WORKING IN SWITZERLAND, ALEXANDRE [SURNAME NOT GIVEN] SAYING: "For me, it's good news. It gives me more euros for the same amount of Swiss Francs. But then, where will it go from here? Where will we go? What will the consequences be?" MAN STEPPING TOWARDS CASHIER VARIOUS OF 500 AND 200 EURO BANK NOTES BEING COUNTED VARIOUS OF SWISS FRANC BANK NOTES PEOPLE QUEUING IN OTHER NEARBY CURRENCY EXCHANGE OFFICE PERSON HANDING SWISS FRANC BANK NOTES TO CASHIER VARIOUS CLOSE-UP OF SWISS FRANC BANK NOTES SIGN READING: "CHANGE RIVER" STREET WITH TWO EXCHANGE OFFICES
  • Embargoed: 30th January 2015 12:00
  • Keywords:
  • Location: Switzerland
  • Country: Switzerland
  • Topics: General
  • Reuters ID: LVAD74IIRYPY1H68DW6OTMK4GIDF
  • Story Text: After the Swiss National Bank shocked financial markets on Thursday (January 15) by scrapping a three-year-old cap on the franc, sending the safe-haven currency soaring against the euro and stocks plunging amid fears for the export-reliant Swiss economy, people rushed to currency exchange offices in order to exchange their Swiss francs for euros.
    Many people did not bother with small change, exchanging larger amounts.
    Only days ago, SNB officials had described the 1.20 francs per euro cap, introduced in 2011 at the height of the euro zone crisis to prevent the strong currency leading to deflation and a recession, as the cornerstone of the bank's monetary policy.
    The U-turn sent the franc nearly 30 percent higher against the euro in chaotic early trading. It came a week before the European Central Bank is expected to unveil a massive bond-buying programme that might have forced the SNB to intervene repeatedly to defend the cap.
    As it removed the upper limit on the currency, the SNB sought to discourage new flows into Swiss francs by pushing down its interest rate on some cash deposits held at the central bank by commercial banks and other financial institutions.
    After taking the rate into negative territory last month for the first time since the 1970s, it cut another 0.5 percentage points on Thursday to -0.75 percent, a move Jordan said would help ease upward pressure on the franc over time.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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