Geoffrey Kendrick, head of European currency strategy at Nomura International, points out that the negative rates would allow a lender “to make money” on the deposit accounts.
Since September 2011, the Swiss central bank has kept a cap of 1.20 francs per euro to stem safe-haven investors as a stronger franc would pressure the country’s large export industry.
CurrencyShares Swiss Franc Trust
For more information on the Swiss currency, visit our Swiss franc category.
Max Chen contributed to this article.