Swiss Franc is all over bar the shoutting....

[SilverSanchez]

This article was written by Keith Weiner for Monetary Metals website which I follow

The Swiss Franc Will Collapse

By Keith Weiner on January 27, 2015 in Currencies and Banking, Current Market News, Economic Papers, Sovereign Debt Crisis

I have worked to keep this piece readable, and as brief as possible. My grave diagnosis demands the evidence and reasoning to support it. One cannot explain the collapse of this currency with the conventional view. "They will print money to infinity," may be popular but it's not accurate. The coming destruction has nothing to do with the quantity of money. It is a story of what happens when interest rates fall into a black hole.



Yields Have Fallen Beyond Zero

The Swiss yield curve looks like nothing so much as a sinking ship. All but the 20- and 30-year bonds are now below the water line.

Read more here (must do a free registration)

http://monetary-metals.com/the-swiss-franc-will-collapse/

 

[Pirocco]

And what is it now, mid march 2015, 2 months later, with the CHF back to where it was mid january before the Jump?

 

[JulieW]

A view on the Swiss Franc and SDR mechanism that is apparently in the wings.

In all categories the following seven currencies dominate the top positions:

1. USD United States dollar
2. EUR European Union euro
3. YEN Japanese yen
4. GBP Great Britain pound
5. CHF Swiss franc
6. CAD Canadian dollar
7. RMB Chinese yuan

The top 4 make up the current composition of the SDR. With all the hype surrounding the RMB, and its internationalization for inclusion into the Special Drawing Right, the remaining 2 currencies have somewhat been forgotten.

In order for the Swiss franc to be considered for the SDR, which it would have to be based on the above metrics and conditions, it had to end the peg to the euro and free float like the ones above. This also means the RMB will end its managed peg to the USD in the coming months and become more market oriented before being added to the basket.

The legitimacy of the basket, and the SDR's ability to stabilize both global liquidity and the new exchange rate regime, will require all 7 currencies listed above to be included.

The IMF has also expanded and improved the data reporting which is expected from its member countries. This is a vital component of the transition to a multilateral financial system structured around the SDR.

In a report presented to the G20 Finance Ministers and Central Bank Governors on September 11, 2014, the International Monetary Fund, the Bank for International Settlements, and the Financial Stability Board, reviewed, and dictated, the terms of improving the data gaps on foreign currency exposures.

This reduction in foreign currency risk is directly tied to the coming discussions around adjustments to the SDR basket, and the Sovereign Debt Restructuring Mechanism. The SDRM will address the growing sovereign debt crisis and allow for a re-allocation of SDR instruments under the Designation Mechanism.

The DM will be used in situations where the capacity in voluntary trading arrangements becomes insufficient. Member countries of the IMF who have strong external positions, being loaner nations, can purchase SDR's with freely usable currencies, from members with week external positions, being borrower nations.

The use of substitution accounts will ensure that no exchange rate losses are incurred during the process. When we consider the large amount of USD in the foreign reserve accounts around the world, a sovereign debt which the US owes to China, among others, the use of a DM and SDRM methodology will only work if the above 7 currencies are included into the SDR composition to create the necessary stability and legitimacy.

http://philosophyofmetrics.com/2015/03/11/the-real-reason-the-swiss-peg-ended/