Swiss to counter strong franc

The Swiss government said yesterday it would spend two billion francs (Dh9.3 billion) to counter the impact of the strong franc on the domestic economy. The funds would be spent to "reinforce the sectors hit by the ... unfavourable exchange rate and would prevent the relocation of jobs abroad," the government said in a statement. Industries including exports, tourism, innovation, research and infrastructure are expected to benefit, although no details were given on the specific measures. Surplus Article continues below Economy Minister Johann Schneider-Ammann said a taskforce will decide in the coming days "in what exactly and how these funds would be invested." The funds would come from the country's budget surplus, which is expected to reach 2.5 billion francs in 2011. Switzerland's export industry has been hit hard by the strength of the franc against major currencies. Earlier Wednesday, the Swiss central bank announced the third round of liquidity measures in two weeks to cool demand for the franc.