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Wednesday, September 7, 2011

Abandons floating exchange rate Is a huge mistake for Switzerland


The move will work for a while, but the market will have more money in the end than the SNB. The Swiss central bank risks losing a lot of money buying up lots of foreign currencies which they will eventually sell at a loss.

Another risk is that the central bank will totally debase the Swiss franc trying to keep Switzerland 'competitive' which will then destroy the traditional Swiss financial industry. Rogers said.

So this is a huge mistake for Switzerland since they are going to suffer more either way. - in CNBC


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