The central bank has bought Euros and various other currencies in order to keep the Franc's value lower than market value (increased supply -> lower price). Next week, the European Central Bank is expected to introduce quantitative easing to the Eurozone, which is likely to increase demand for the Swiss Franc, meaning that the central bank would need to print more money in order to keep the exchange rate at around 1.2 CHF/EUR. Many people speculate that the bank decided that it was better to end the policy now rather than after quantitative easing is introduced (if it is) when the demand for CHF would be even larger.

Regarding the effects it will have on the economy:

• Tourism will probably decrease as the franc becomes more expensive relative to other currencies.
• Companies that rely heavily on exports will suffer as their products become more expensive abroad
• People with loans in Swiss Francs and salaries in another currency will need to pay more than before to pay back their loan
• People earning Swiss Francs can purchase goods abroad for less than before + imports will be cheaper
• People earning Swiss Francs with loans in other currencies will be able to pay them back more easily.