Economic news

European countries resort to currency intervention because of political risks

The central banks of a number of European countries, including Switzerland, Denmark and the Czech Republic, are forced again to resort to currency intervention because of high political risks. First of all they are worried by the exchange rates of their national currencies against the euro, according to Financial Times.

The Swiss National Bank increased international reserves by almost 4% last month, while the Central Bank of Denmark sold 4.7 billion of Danish krona. The Czech central bank bought 14.5 billion euros in January, about the same volume as for the whole 2016, and increased another 7.5% to its currency international reserves.

Swiss franc and Danish krone are popular among investors as supplemental assets in anticipation of upcoming elections in several European countries, including France and the Netherlands.

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