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Well, then it's not overvalued, is it? People value it as a hedge, so it's relative value increases.
by jnbiche 13y ago
Well, then it's not overvalued, is it? People value it as a hedge, so it's relative value increases.
- _delirium 13y agoIn a certain sense it's always true that free-floating currencies are "correctly valued", in the sense that their value is what the market currently is willing to pay. As far as I know, CHF has no exchange restrictions or capital controls, so it's valued at whatever forex traders are willing to pay for it. If anything, the Swiss Central Bank has been trying to intervene on the other side, to bring the price down through monetary policy (due to worries that the high CHF value is hurting exports).