Arab Today, arab today swiss brace for dramatic impact of strong franc
Last Updated : GMT 10:54:50
Arab Today, arab today
Arab Today, arab today

Swiss brace for 'dramatic' impact of strong franc

Arab Today, arab today

Arab Today, arab today Swiss brace for 'dramatic' impact of strong franc

The Swiss central bank
Geneva - AFP

An overheated Swiss franc could have "dramatic" consequences for the country's economy, a top official said Sunday, as the country's business and tourism sectors braced for tumbling sales.  
The franc is still up around 15 percent against the euro since the Swiss central bank stunned markets Thursday with its bombshell decision to abandon the minimum rate of 1.20 francs against the European common currency.
The Swiss National Bank had since September 2011 been defending the exchange rate floor in a bid to protect the country's vital export industry, including by buying massive quantities of foreign currencies.
If the franc remains at its current level, trading at around parity with the euro, "the consequences will be dramatic," Serge Gaillard, head of the Swiss Federal Finance Administration, told the Zentralschweiz am Sonntag weekly.
He warned that the economic outlook for the wealthy nation would "radically" worsen, although he said it did not believe it would slide into recession.
The high level of the franc is seen as a significant threat to Switzerland's export-dependent economy, as prices for Swiss goods abroad suddenly jumped 20 percent overnight.
The central bank has faced a barrage of criticism, with Swiss exporters and tourism companies accusing it of sinking their business.
Thursday's move has also been criticised abroad, where the soaring franc has wreaked havoc on markets, engulfed eastern European neighbours whose mortgage debt is denominated in the franc, and bankrupted at least two foreign exchange brokers.
Central bank chief Thomas Jordan has adamantly defended the move, insisting the bank's efforts to hold down the Swiss currency, including through buying up massive amounts of foreign currency, were no longer justified.
He has received backing from Swiss Finance Minister Eveline Widmer-Schlumpf.
"I do not question the move," she told several Swiss media in an interview published Sunday, voicing confidence that "Swiss businesses will handle the situation."
She said it was "too early" to envisage business tax cuts to counter the effect of the strong currency, but said she might reconsider further down the line.
- 'In shock' -
Swiss businesses were meanwhile bracing to see exports plunge and shoppers at home flood across to neighbouring eurozone countries for cheaper goods.
"Overall, our country has landed in a much more difficult situation," Heinz Karrer, head of the Swiss Business Federation, told the Sonntagszeitung weekly.
"If the exchange rate stands at around parity, many Swiss export companies to will likely no longer be able to compete," he warned.
The country's already struggling tourism sector meanwhile began seeing cancellations as already pricy ski resorts suddenly became far more expensive for foreign visitors.
"We are still in shock," Juerg Schmid, head of Swiss Tourism, told the weekly Le Matin Dimanche, lamenting that the "brutal" central bank decision had "created uncertainty ... on the eve of the high season."
"The telephones have stopped ringing, and ... online reservations have stopped," he said, adding that the industry now needed to try to persuade Swiss tourists who already have francs in their pockets to stay in Switzerland this season.
That could be complicated. Armed with more purchasing power abroad, many shoppers were already heading across the border to snap up cheaper goods in neighbouring eurozone countries.
"When you look at the prices here, you realise it really, I mean really, pays off," Daniel, who lives in Switzerland, told Le Matin Dimanche as he pushed a cart around a French supermarket.
Geneva-based homemaker Ana Cecilia meanwhile told the paper she planned to do much more shopping in France, estimating that she could save some 400 francs (euros) a month at the new exchange rate.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss brace for dramatic impact of strong franc Arab Today, arab today swiss brace for dramatic impact of strong franc

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss brace for dramatic impact of strong franc Arab Today, arab today swiss brace for dramatic impact of strong franc

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Syrian children die of hunger

GMT 19:25 2017 Sunday ,22 October

Syrian children die of hunger
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday