Newspaper commentaries on the SNB decision
The Swiss National Bank (SNB) surprised even the commentators in Swiss daily newspapers with its interest rate decision. Opinions are divided on whether the SNB’s move was the right one.
"He succeeded in surprising us", comments Blick on the actions of SNB Director Thomas Jordan and speculates whether "the SNB chief knows something we don't" and was therefore looking for a quick exit - for example, about the outcome of the Russia crisis or planned government bond purchases by the European Central Bank (ECB). After all, the Swiss export industry is in such a good position today "that it no longer needs subsidies".
The SNB's move "may come as a surprise, but there are good reasons for it", writes the commentator on Watson. It has obviously come to the conclusion that "the minimum exchange rate can no longer be maintained" with the imminent purchase of government bonds by the ECB. Although the SNB now has room to maneuver again, it is uncertain whether it "will be able to weather the resulting storm on the markets".
Jordan has "lost the poker game against the financial markets", writes the Berner Zeitung. Nevertheless, it would be wrong to panic now. After all, the Swiss economy has coped surprisingly well with the crash of the euro and should prove its adaptability once again in the coming months.
The end of the minimum exchange rate primarily means that the SNB will not allow the franc to become a quasi-euro, comments the Neue Zürcher Zeitung. "It is to be hoped that it will stick to it." After all, the SNB must strive to ensure price stability and an environment that is as stable as possible: "It must not be its job to promote exports. An end with horror is better than horror without end."
There is also talk of horror and the end in the Tages-Anzeiger and the Bund - albeit in reverse. With regard to the Swiss economy, the SNB is anything but out of the woods. By increasing negative interest rates, it is relying on the principle of hope. After all, if it has to intervene in future to weaken the franc, success is less certain and the costs will be higher. "Not least because the SNB's credibility suffered as a result of the way it communicated yesterday."
It sounds similar in Northwestern Switzerland: an independent national bank like the SNB must act just as independently and surprisingly. But as "courageous and independent" as the decision was, "it is of course a capitulation - whatever the reasons for it may be." And Jordan, in whose hands the Swiss economy lies, has "inevitably damaged his reputation".
According to the Basler Zeitung, the SNB's credibility has also been "deeply dented". "It will no longer dare to announce a regime based on market confidence any time soon." At least in the short term, the economic damage will outweigh the consequences. After all, the prosperity of Switzerland is determined by the well-being of its export economy. However, there is a substantial countervalue for the high price of regime change: "It's called freedom."
Südostschweiz calls what the SNB has regained with this move "monetary policy room for maneuver". The downside: "The export industry and Swiss tourism are facing very hard times." On the other hand, without the minimum exchange rate, "the damage to the Swiss economy would have been enormous". But: "In the long term, this could not work out well" because the euro, to which the franc was pegged, "is doomed to depreciate" due to the difficult economic situation.
The Neue Luzerner Zeitung, among others, sees the SNB's move as "a sign of mistrust in the development of the eurozone". At the same time, it is now clear "that the Swiss economy is now more dependent than ever on free access to the rest of the world." Politicians are called upon to take care of "Switzerland as a workplace".
Looking beyond the national borders
The major German newspapers devoted a lot of attention to the SNB decision.
Attention. The Süddeutsche Zeitung described the move as "a capitulation to the long-term consequences of the financial crisis". Although the exchange rate gain of 30 percent within a few minutes was a historic moment, it was merely a reaction by investors "to the dilettantish attempt by the Swiss central bank to unpeg the franc and decouple it from the euro".
Switzerland now faces the curse of the luxury country, predicts the newspaper Welt. For the eurozone, the plunge triggered by the decision is not a cause for concern, writes Der Spiegel. This is because the devaluation of the euro is intentional and the "crash of the euro is likely to continue". The Frankfurter Allgemeine Zeitung calculates for its readers that Switzerland has "now become Germany's largest creditor" thanks to its large-scale purchases of foreign securities.
The Swiss decision is an interesting lesson in the strangely precarious state of the global economy. Currency specialists would search in vain for a comparable event, writes the New York Times. The biggest insight: six years of aggressive currency activism by the major central banks may have saved the global economy. "But it also had many side effects far away from the US that people around the globe will have to deal with for a long time to come."
For the Washington Post, the SNB's decision is "probably not a good one". This is because Switzerland is still suffering from deflation with falling prices, and a stronger currency will make this even worse. The business publication Bloomberg blames Europe for the "shock with the Swiss franc". The move is "a kind of capitulation" and underlines a bigger problem: Europe's inability to restore economic growth. (SDA)


















