Swiss authorities prepare EUR 1.3 bln package to ease exchange rate while National Bank intervenes to weaken franc

Switzerland will on Wednesday present a CHF 1.5 billion (the equivalent of EUR 1.3 billion) package meant to ease concerns about the Swiss franc's rate, which has been rapidly increasing during the last couple of weeks, according to Swiss media quoted by Reuters. The new measures will also include exempt of exempt small and medium-sized companies and hotels from social security contributions, according to TagesAnzeiger newspaper. Media and analysts had been expecting that the Swiss National Bank would set a lower limit for the EUR / CHF exchange rate. The Swiss National Bank on Wednesday announced its decision to expand again significantly the supply ofliquidity to the Swiss franc money market. "In so doing, it is increasing the downward pressure on money market interest rates with a view to further weakening the Swiss franc exchange rate. With immediate effect, it aims to expand banks’ sight deposits at the SNB further, from CHF 120 billion to CHF 200 billion. In order to achieve this new target level as quickly as possible, it will continue to repurchase outstanding SNB Bills and to employ foreign exchange swaps," according to the bank's announcement. Read hereabout the recent evolution of the CHF currency. editor@romania-insider.com (photo source: Sxc.hu)