Euro‑Swiss Franc Pair Faces Regulatory Shock as CHF Loans Under Scrutiny
The EUR/CHF pair has slipped toward its 52‑week low, falling to 0.9311 on 22 November 2025 after a recent 0.9661 peak in March. The decline is largely driven by a sweeping regulatory change announced by the Greek Ministry of National Economy and Finance, which proposes a 50 % haircut on Swiss‑Franc denominated loans for vulnerable borrowers. This move, aimed at reducing the long‑standing burden of CHF debt that has plagued Greek households since the 2010‑2015 currency collapse, is expected to strengthen euro demand and further pressure the franc.
Regulatory Shockwaves
The new legislation, outlined on 23 November by several Greek news outlets, allows eligible borrowers to convert up to half of their CHF exposure into euros. The policy is targeted at more than 20 000 borrowers who have been stuck with CHF loans since the crisis, and it is anticipated to lift the debt burden for a significant portion of the population. Market observers predict that the announcement will boost euro demand as Greek borrowers seek to convert to a more stable currency, while Swiss‑Franc demand may wane due to the perceived weakening of CHF as a safe‑haven currency.
Impact on Euro Demand
The euro has already been benefitting from a broader trend of declining U.S. interest‑rate expectations. German bond yields have fallen, with the 10‑year yield dropping 4 basis points to 4.06 % as reported on 24 November. Market participants cite persistent uncertainty over U.S. rate policy and fears of a potential AI‑related bubble as the key drivers of the bond market’s softness. The fall in yields has made the euro more attractive relative to the Swiss franc, further widening the spread.
Market Reaction and Outlook
In the hours following the Greek announcement, the EUR/CHF pair surged, reaching a high of 0.9365 before retreating to the 0.9311 level reported by IDEAL PRO. The movement underscores the sensitivity of the pair to regulatory developments in the eurozone and highlights the risk premium that Swiss‑Franc holders currently face.
Looking ahead, traders should monitor the implementation of the haircut policy and any further clarifications from Greek authorities. Any delay or rollback could soften the euro’s recent rally, while a swift rollout is likely to keep the pair within the 0.92‑0.94 range for the near term. The pair’s current trajectory suggests that, barring significant macroeconomic surprises, the euro will remain under upward pressure against the franc as the regulatory environment continues to evolve.
