There was once a time when CHF (Swiss franc) was at least partly backed by gold. Since 2000, no such luck.
You might be well advised to study a currency phenomenon called the "unholy trinity" in regards to your opinion of speculative attacks on CHF.
Pick any two out of three: free movement of capital, control of domestic economy, stable exchange rates.
If the Swiss wanted to defend the peg, they'd have to give up one of the other two options. You can't EVER get all three.
Britain tried this with Pound Sterling, but Soros saw that their attempts to defend the currency were unsustainable. The result was predictable.
It's not beyond possible that the CHF could find itself "adjusting" the peg if the ECB decided to embark on a path of massive quantitative easing. In fact, I'd wager that lots of bets are already being made on this very hypothesis.
You might be well advised to study a currency phenomenon called the "unholy trinity" in regards to your opinion of speculative attacks on CHF.
Pick any two out of three: free movement of capital, control of domestic economy, stable exchange rates.
If the Swiss wanted to defend the peg, they'd have to give up one of the other two options. You can't EVER get all three.
Britain tried this with Pound Sterling, but Soros saw that their attempts to defend the currency were unsustainable. The result was predictable.
It's not beyond possible that the CHF could find itself "adjusting" the peg if the ECB decided to embark on a path of massive quantitative easing. In fact, I'd wager that lots of bets are already being made on this very hypothesis.