SNB spent 25.8b francs to defend currency cap before abandoning it

Zurich

THE Swiss National Bank (SNB) spent 25.8 billion Swiss francs (S$37 billion) defending its cap on the currency late last year before jettisoning the policy as too costly for the country's economy, it said on Thursday.

The SNB shocked markets in January when it removed the 1.20 per euro ceiling on the Swiss franc, sending the currency soaring, stocks plunging and sparking fears for Switzerland's export reliant economy.

The SNB has argued that it had to abandon the franc's three-year-old cap against the euro, but the decision is still reverberating, with politicians stepping up their cr…