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The currency mountain with more holes than a Swiss cheese

A potential €200bn hole in Switzerland’s foreign exchange reserves is worrying asset managers

Holes are a good thing when they appear in Switzerland’s Emmental cheese, but a potential €200bn hole in Switzerland’s foreign exchange reserves is worrying asset managers.

Twelve months ago the Swiss National Bank, trying to counter the impact of a flight to quality by anxious investors, decided to set and maintain its euro exchange rate at a minimum of Sfr1.20.

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