Currency manipulation is becoming a hot topic now that Donald Trump has been inaugurated as the US President.
Followers of his social media accounts will be aware of his criticism’s of a number of countries for artificially weakening their currency’s in order to remain competitive on a global scale, and recently his attention has been on the Eurozone and how Germany is benefiting from the weaker Euro.
It likely that sooner or later CHF will hit the headlines the Swiss National Bank works particularly hard to ensure the Swiss Franc doesn’t become vastly overvalued. Due to the Swiss Franc’s status as a safe haven currency the SNB has had some major instances over the year whereby it would of had to ensure the changes within the Swiss Franc’s value we rent too drastic, for example the UK’s Brexit vote and the shock win for President Trump.
Investors tend to pile in to the Swiss Franc in times of uncertainty due to the countries political and legal stability, which is why the currency has gained so much value in recent times and why the SNB must manage CHF’s value. There is talk of the SNB spending as much as 9% of the country’s GDP trying to weaken and mange the CHF exchange rate, so any changes to laws surrounding this process would be likely to impact CHF’s value greatly.
If you wish to be kept up to date regarding any major moves between the GBP/CHF exchange rate, feel free to get in touch.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.