SNB epic intervention move: now action has to follow words

In September 2011 the Swiss National Bank (SNB) aimed for a substantial and sustained weakening of the Swiss franc. In an epic intervention move, it declared to no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20. The SNB said it will enforce this minimum rate with 'the utmost determination and is prepared to buy foreign currency in unlimited quantities'.

Well, this lead to an immediate weakening of the CHF. Exchange rates jumped from a close to 1.00 ratio to well above 1.20. What happened during the last weeks is a development getting closer and closer to 1.20 - as of the time I write these lines, we stand at 1.2004 (see chart).

Seems like it is time for the SNB to let actions follow big words. I would not be surprised to see this topic hit the news in the next weeks.