Exchange Smarter:
Today’s Rates at Your Fingertips.

🐉 The Swiss Franc Shock of 2015: “The Day Traders Cried”

For years, the Swiss National Bank (SNB) had pegged the Swiss franc (CHF) to the euro (EUR), keeping it from rising too high. Switzerland’s economy depends heavily on exports, and a strong franc makes Swiss goods more expensive abroad.

🔒 The Peg That Calmed the Market
From 2011 to early 2015, the SNB promised to keep the franc from rising above 1.20 per euro. Traders trusted this peg like gospel. Currency exchange desks, hedge funds, and retail traders built strategies around it.

💥 Then Came January 15, 2015
Without warning, the SNB abandoned the peg. In seconds, the franc skyrocketed—gaining nearly 30% against the euro. It was one of the most violent currency moves in modern history.

📉 The Fallout

• Major FX brokers went bankrupt.
• Traders lost millions in minutes.
• Some retail platforms couldn’t even process trades fast enough.
• One broker described it as “a tsunami in a bathtub.”

🇨🇭 Why Did They Do It?
The SNB was tired of spending billions defending the peg. They chose surprise over gradual change to avoid speculative attacks. It worked—but it also shattered trust in central bank predictability.

🤯 The Takeaway

In the foreign exchange market, even the most “stable” currencies can turn volatile overnight. Central banks hold immense power—and when they act unexpectedly, the ripple effects can be global.

Want one involving currency swaps between countries, or how the euro nearly split during the Greek debt crisis? I’ve got more FX folklore ready to go.