Currency risk: Read more on this subject: Economy - International News Story Source: economist-Europe ANXIETY at the Swiss National Banks surprise decision today to drop its peg against the euro was nowhere more evident than in central Europe. The Swiss franc soared against all the regions currencies, including the euro, the Hungarian forint and especially the Polish zloty, and stock exchanges in Poland (pictured) and Hungary dropped sharply. During the global economic crisis, similar swings plunged many borrowers in the region into deep water: they had gorged on low-interest loans (especially mortgages) denominated in Swiss francs, only to find themselves unable to meet payments when the francs value rose sharply in 2009. But despite the worried reactions on the bourses, the region is much better prepared for exchange-rate swings today than it was six years ago. The biggest impact of the soaring franc could be political, chiefly in Poland, which is preparing for parliamentary elections this autumn. The most radical steps to address the Swiss-franc Read More or Make a Comment
Posted on: Sat, 17 Jan 2015 00:02:43 +0000
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