Swiss exporters concerned that currency is too high
Exporters in Switzerland are beginning to complain about the strength of their own currency.
Many export businesspeople have warned the appreciation of the currency is eating into earnings margins, thus threatening thousands of jobs.
Economists have said the Swiss franc has now gone above a euro barrier, with the euro sinking to new lows against the Swiss franc.
The euro has been trading between 1.30 and 1.35 francs, whereas one year ago, the euro was worth more than 1.50 francs.
If the euro dips below the 1.30 franc mark, Swiss companies that owe part of their competitiveness to a weak franc will find themselves in an even more precarious position, with one franc in two being earned from exports.
Source: amsterdamnews.net
Publication date: 7/19/2010
Exporters in Switzerland are beginning to complain about the strength of their own currency.
Many export businesspeople have warned the appreciation of the currency is eating into earnings margins, thus threatening thousands of jobs.
Economists have said the Swiss franc has now gone above a euro barrier, with the euro sinking to new lows against the Swiss franc.
The euro has been trading between 1.30 and 1.35 francs, whereas one year ago, the euro was worth more than 1.50 francs.
If the euro dips below the 1.30 franc mark, Swiss companies that owe part of their competitiveness to a weak franc will find themselves in an even more precarious position, with one franc in two being earned from exports.
Source: amsterdamnews.net
Publication date: 7/19/2010