SNB shocks markets by abandoning euro ceiling ahead of ECB showdown
Franc and euro trading at parity on day of decision
The Swiss National Bank (SNB) rocked markets by scrapping its currency ceiling today, pre-empting any further easing measures the European Central Bank (ECB) will announce next week.
In September 2011, the SNB imposed a minimum exchange rate of Sfr1.20 per euro – seeking to put a lid on the appreciation of its currency – which it pledged to defend with "utmost determination" as recently as December 18.
Today, the SNB decided to abandon the ceiling, while also dropping its key interest rates
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