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you missed the part where the "SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate". When a central bank artificially sets an exchange ceiling/floor, a
by antr 12y ago
you missed the part where the "SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate".
When a central bank artificially sets an exchange ceiling/floor, and lets it float again freely expect the currency to adjust. That's not "market volatility", that's just the market adjusting to a true free-float.
- bdcs 12y agoLook back to Sept 2011 to see the Franc do similar price swings without a cap in place... In fact, that's WHY the cap was put into place (also to prevent deflation, recession, and a huge slump in exports).
- mike_hearn 12y agoAll the cap did is try to hide the volatility that was already there.
- venaoy 12y agoDoesn't matter what the cause is. A 20%+ variance in mere minutes _is_ volatility, by definition.