When the governor of the Swiss central bank sounds alarmed, it is time to take notice. Switzerland, famous for its cheese but also for its prosperity, has built its economy around trade, and Thomas Jordan is worried that protectionism will now ruin it.
Investors shifted massively into eurozone equities in February, with the second highest allocation recorded for the asset class, a survey of fund managers by Bank of America Merrill Lynch shows.
By Piroska M. Nagy
This article was first published on the website of the European Bank for Reconstruction and Development (EBRD).
The Swiss National Bank’s January decision to remove the Swiss franc’s cap against the euro has sent shockwaves through the global economy. It triggered particularly strong reactions in parts of central and south-eastern Europe, where currencies in some countries came under severe pressure.
The Swiss National Bank’s shocking decision last week to scrap the cap that was preventing the Swiss franc from appreciating to more than 1.20 to the euro continues to play out in the markets.