Forex Dictionary

SNB Chairman Roth Speaks

SNB Chairman Roth Speaks

Measures the value of all currency and liquid cash assets held by the public. A rising trend has a positive effect on the nation's currency although the relationship is not entirely reliable. The commonly held theory is that elevated currency levels spur growth and have an inflationary effect, leading to higher interest rates. However, some believe that an increased supply of money will trigger an equal drop in demand, leading to a lower currency valuation.