MONETARY POLICY OF THE SWISS NATIONAL BANK, EXCHANGE RATE OF THE SWISS FRANC AND THEIR IMPACT ON CITIZENS OF BOSNIA AND HERZEGOVINA
MONETARY POLICY OF THE SWISS NATIONAL BANK, EXCHANGE RATE OF THE SWISS FRANC AND THEIR IMPACT ON CITIZENS OF BOSNIA AND HERZEGOVINA

Summary/Abstract: Through a historical perspective, the Swiss franc has frequently been accepted as a currency safe haven the investors sought shelter in while trying to avoid the global macroeconomic or geopolitical risks. The unexpected removal of the CHF / EUR exchange rate cap by the Swiss National Bank in January 2015 agitated the global financial markets, with the consequent reaction being an overestimation of CHF of about 30%. Citizens of Bosnia and Herzegovina (B&H) and the entire region also suffered from significant effects of such SNB action. The results of the research of this paper provided for the accomplishment of the primary research mission: to promote knowledge of the monetary policy of the SNB, but also of its impact on the citizens of B&H. The paper details the most important features of the monetary policy, its models, samples and instruments, as well as the monetary policy of the SNB. In the course of writing this article, particular attention was paid to the effects of SNB’s monetary policy to B&H citizens, but also to different approaches to solving the problem of loans denominated in CHF. Likewise, a possible future overview of loans denominated in CHF has been elaborated at the very end of the paper

• Details
• Contents