8161aca2e8dbd0f8cdf5098cb99c694acd744f31Historically neutral Switzerland’s foray into the global currency war ended in defeat this past week after its central bank left markets shell-shocked by abandoning the franc’s exchange rate floor, analysts said. But with major shifts in monetary policy under way, the currency war is hardly over and the front lines will move to other countries. “The Swiss central bank was the first to throw itself into the currency war, (and) it is the first to capitulate,” said Christopher Dembik, an economist at Saxo Bank. The capitulation amounted to abandoning the Swiss franc’s exchange rate floor of 1.20 francs to the euro, which the Swiss National Bank had imposed more than three years ago to stop the franc from appreciating too much against the European single currency. But on Thursday the SNB raised the white flag and surrendered, letting the franc float. The shock announcement was felt across the globe as the franc immediately strengthened by 30 percent against the euro. It has since settled at around parity with the euro, which is a 15 percent gain in value since the floor was removed. More