So in 2015 the value of the Swiss Frank sudenly increased dramiatically. All I know is that the Bank of Switzerland removed a cap on their exchange rate and this caused the rise but like, how? How is it possible to just suddelnly be like “oh actually this currency is now worth much more than is was last year”?
Edit: Typos
In: Economics
The Swiss National Bank was previously committed to artificially keeping their currency pegged to the Euro by buying Euros every time CHF/EUR went over 1.2. When they decided to stop doing this, the currency was allowed to normalize to the range where it would naturally have been sitting.
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