January 25th 2010 will be the last time that the European Central Bank and Swiss Bank exchange Euros for Swiss franks. The trading began in October 2008 following the breakdown of the investment bank Lehman Brothers. The reason these transactions began to happen was because the other banks were having problems obtaining francs. There was a high demand of Swiss francs in a tough economic because no one wanted the Euro. The European Central Bank and Swiss Bank started a program intended to supply Swiss money to other banks. By swapping these two currencies, this destabilized the market value. Trading two different kinds of money several times it is hard to have a distinct exchange rate.
Exchanging these two currencies, this goes against Aristotle’s beliefs. He wants property to be private. Aristotle states, “Property should be in a certain sense common, but, as a general rule, private; for, when everyone has a distinct interest”. Through each country or bank having their own currency then they will be able to establish a solid currency exchange rate. The reason for this program being stopped was the establishment of the Euro. These acquisitions started to become “unnatural” for less use of the Swiss franc was needed.
Each country has their own currency, except for the 16 countries who form the European Central Bank. They would swap currencies to stabilize the economies of the weaker bank. When the European Central Bank and Swiss Bank swapped currency for long enough periods, their currencies value declined and not as much was needed in those particular banks. By the banks, not swapping they are using their own instruments to carry out their jobs. Therefore by stopping this trade the banks will have complete “private property” over their money and not be sharing it with other banks.
http://www.nytimes.com/2010/01/19/business/global/19swap.html?ref=business
