In a surprise move on January 15, 2015 the SNB scrapped the minimum exchange rate with the euro of CHF1.20 that it had introduced in September 2011.
The SNB concluded that enforcing and maintaining a minimum exchange rate against the euro was no longer justified as the euro had depreciated considerably against the US dollar causing, in turn, the Swiss franc to weaken against the US dollar.
Small and medium-sized companies relying on exports to Europe are the most affected. One of the consequences of the minimum exchange lift was that the price of Swiss companies’ exports to the European Union increased in line with the franc’s value against the euro.
To counteract the increased price of exports, Swiss companies implemented cost-cutting measures like wage cuts, payment in euros and longer working hours.
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