Swiss corporates suspend hedging after Sfr spike
Treasurers taking time out following removal of €/Sfr cap
Swiss corporate treasurers have put foreign exchange hedging decisions on hold after the removal of the Swiss franc's currency cap led to extreme volatility. The Swiss central bank decided to remove its 1.20 cap on the €/Sfr rate yesterday, causing it to strengthen dramatically to 0.85, before closing at 0.97.
The extreme moves have made it difficult for companies to know how and whether to hedge, says Markus Bieri, head of corporate finance at technology company Avaloq Evolution in Zurich. "It
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