http://www.forexbrokerz.com/Jan. 15, 2015 (Bloomberg Businessweek) -- The Swiss National Bank shocked the world Thursday when it announced it would remove the cap it had in place to prevent the Swiss franc from rising too high against the euro.
Here's what that means and what it's all about.
Switzerland has a long reputation for having an incredibly stable financial system (everyone knows about its legendary banks). In 2011, during the scariest times for the euro zone, the country's safe-haven status turned the nation into an island of tranquility. Money poured into it from elsewhere in the euro zone as investors sought a safe place to park their cash.
Of course, with everyone wanting to have their money in Switzerland, the franc exploded in value. In early 2010 one franc was less than 0.7 euro. By the middle of 2011 the franc was nearly at parity against the euro, a massive move in a very short period.
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