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Tuesday, August 23, 2011

'Strong Swiss franc strangles economy'

from the guardian.....

........................"But it is the traders panic-buying francs who have really left Switzerlandin a precarious position, according to angry business leaders. These "speculators" were recently criticised by Nick Hayek, chief executive of the Swatch group, who told them to "stop messing with our Swiss franc". Christoph Raz, a producer of Emmental cheese, said this week that he had already lost 17% of exports. Serge Gaillard, director of employment at Switzerland's state secretariat for economic affairs, predicted big job losses this autumn if the franc remained high.

Fifty per cent of Switzerland's robust, stable economy relies on exports, and it's this sector the SNB was trying to shore up earlier this month when it started trying to devalue the franc by flooding currency markets. So far the experiment has had only modest success: on Friday the franc had fallen back to about 1.13 against the euro"..............READ MORE

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