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gnomes of zurich

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Financial Dictionary

Gnomes of Zurich

A term used by British labor ministers during the 1964 Sterling Crisis to refer to Swiss banks.

Investopedia Commentary

British labor ministers were convinced that the foreign exchange speculation activities of Swiss banks were causing the devaluation of the Sterling.

Just like the gnomes of legends, who dwell underground counting their riches, Swiss bankers were known for their extremely secretive policies.

Related Links

Elves And Gnomes: A Fairytale World Of Investing
Floating And Fixed Exchange Rates
A Primer On The Forex Market

See also: Currency, Devaluation, Exchange Rate, Foreign Currency Effects, Leprechaun Leader

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