Currency affair strains franc exchange rate

According to bank documents made public by SVP politician Christian Blocher in December, the wife of Philipp Hildebrand, president of the Swiss National Bank, has been involved in dubious currency transactions. The daily Le Temps writes that the affair could have negative repercussions for the euro-franc exchange rate: "The banks' reputation will suffer further damage, as certain Anglo-Saxon observers have already commented. The affair is also hitting Switzerland hard because it is putting its national bank under pressure at a time when its effectiveness depends essentially on its reputation. The risky move of setting a minimum exchange rate of 1.2 francs to 1 euro in September of last year was easier to push through than expected. This success cost practically nothing and has since been praised almost unanimously. ... Many see in it a 'Hildebrand effect'. ... Now the question arises of what impact the affair will have on the minimum exchange rate, and indirectly on the rest of the economy, should it play out negatively."

» full article (external link, French)
More from the press review on the subject » Financial Markets, » Banks, » Politics, » Switzerland
All available articles from » Frédéric Lelièvre

» To the complete press review of Wednesday, January 4, 2012