The Swiss National Bank’s surprise decision on Thursday caused the franc to surge against the euro and dollar, sending shockwaves through the global financial system. The euro suffered its biggest-ever one-day fall against the franc on Thursday, dropping more than 18 percent, after the SNB stunned markets by scrapping its three-year-old pledge to limit the franc’s value to 1.20 per euro.
On Thursday its value had fallen to just 0.85 francs. A number of hedge funds across the world made big losses. The Swiss stock markets plunged by more than 10% after the announcement. Why did the SNB provoke such chaos?
Via Who moved my cheese? – The Swiss Franc debacle
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