Swiss extend currency swaps with Hungary, Poland

26th June 2009, Comments 0 comments

The Swiss central bank continues 7-day swaps for francs against euros.

Zurich -- The Swiss central bank said Thursday it had agreed to extend temporary currency swaps to ensure Swiss franc funding for banks in Hungary and Poland.

The Swiss National Bank said in a joint statement with Hungary's Magyar Nemzeti Bank and Poland's Narodowy Bank Polski that they would continue seven-day swaps for Swiss francs against euros until 31 October.

Banks in the central European nations lent heavily in Swiss francs in recent years, especially for home mortgages, but the cost of those loans has increased due to changes in foreign exchange rates and the strength of the franc.

The swaps are meant "to support further improvements in the short term Swiss franc funding markets," the statement said.

The swap arrangement with Hungary began in February, while the one with Poland was set up in late 2008.

AFP / Expatica

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