The implications of the SNB's shock dismantling of the currency peg - according to Mohamed El Erian

The implications of the SNB's shock dismantling of the currency peg - according to Mohamed El Erian. 1)Swiss companies face a considerable competitiveness challenge ahead. The country will also have to deal with issues of currency mismatches, as well as having to battle larger, externally-induced deflationary forces. 2) Countries with Swiss franc denominated liabilities, such as Hungary, now have to deal with a major adverse valuation shock. 3) Euro politicians will be less willing to accommodate the hyperactivism of the ECB. 4) The SNB's decision is further evidence that central banks are finding it harder to implement a policy of volatility repression. Full FT article: (VIEW LINK)