Can the Swiss National Bank defend the 1.20 EUR/CHF peg?
The Swiss National Bank set a peg of 1.20 for the EUR/CHF pair in the later part of 2011 to stop the appreciation of the Swiss franc, and has said in no uncertain terms that it will defend the peg with the utmost determination. Is there any reason to think that should the peg be tested, the SNB will be unable to properly defend it?
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