| This past January, the Swiss National Bank caused panic in the world of central banking when it announced that it would no longer hold the euro at a fixed exchange rate with the Swiss franc. On January 14, one euro was equivalent to 1.2 Swiss francs; after the statement was made the following day, the euro drastically dropped to just 0.85 to the franc.
Switzerland’s economy is highly reliant on its exports, meaning that a higher value of the franc over foreign currency means losses for the country and its industries. The removal of the peg did indeed cause huge losses for hedge fund holders across the world, and it also triggered the start of the collapse of the Swiss stock market...............................................Full Article: Source
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