DislikedSWITZERLAND: In the wake of SNB Pres Jordan's weekend comments that the
SNB was considering controls on capital inflows, Credit Suisse
strategists maintain that "the most effective capital control measure
would be a very large tax on the total bank reserves held by Swiss
clearers on deposit at the SNB." The tax would have to be geared so that
the forward prices in EURCHF are below the 1.03 lows seen in August 1011
(the last freely traded pre-intervention price for the cross). "Swiss
clearing banks would then face severely negative interest margins...Ignored
The threat of capital controls hasnt done a lot so far