Swiss bank moves to weaken franc

The Swiss National Bank has intensified its measures against the strong franc by boosting the supply of the currency in the money markets.

The SNB said today that it would immediately expand the deposits of banks held at the central bank further, from 120 billion Swiss francs (€106bn) to 200 billion (€177bn) as the currency “remains massively overvalued” despite previous efforts.

The central bank also said it “will, if necessary, take further measures” to counter the franc’s strength, which has largely been buoyed of late by its status as a safe haven for investors to park their cash in times of financial turbulence.

Swiss exporters have been among the hardest hit by the franc’s rise, as the value of their sales abroad diminishes at home.