Business lobby wants SNB to act against strong Swiss franc
Safe haven – but a strong Swiss franc can hurt the country's exports.
Keystone / Ennio Leanza
Select your language
Generated with artificial intelligence.
Listening: Business lobby wants SNB to act against strong Swiss franc
The Swiss National Bank must do something fast to keep the franc’s strength from hurting exporters, according to the country’s biggest lobby group for manufacturers.
The sudden appreciation in the currency is threatening a vulnerable recovery for overseas sales seen in recent months, Swissmem said in a statement on Wednesday.
“The Swiss National Bank is called upon to act quickly within the scope of its mandate,” it said. “The SNB has the leeway to prevent or cushion any future shock appreciation using the instruments it considers best.”
The group didn’t offer a view on what tools the central bank should deploy. While Swiss officials previously used currency interventions to keep a lid on the franc, they have prioritised interest-rate cuts this year to avoid bloating their balance sheet.
The franc has surged some 4% since mid-July amid a global unwinding of carry trades and flows into the haven currency. It traded at CHF0.939 per euro on Wednesday morning.
After faring better than peers during the energy and inflation crises, Switzerland’s economy is struggling to gain traction amid weak export demand. A purchasing managers index of manufacturing has been stuck below the threshold signaling growth since the start of 2023.
The SNB has cut rates twice and is expected to do so again next month. Already before this week’s franc surge, economists had pointed out that its real exchange rate had rebounded to the level seen before the central bank’s last move, adding to the case for policymakers to consider more reductions.
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, if you want to learn more about how we use technology, click here, and if you have feedback on this news story please write to english@swissinfo.ch.
Popular Stories
More
Life & Aging
Why liberal Switzerland is opposed to the Sarco suicide capsule
Greens lodge complain about vote on women’s retirement age
This content was published on
The party is appealing against a 2022 vote to raise the retirement age for women, after news that forecasts about the health of the pension system were miscalculated.
Swiss companies must adapt to EU bottle cap regulation
This content was published on
Plastic bottles in the EU must now have caps that remain attached once unscrewed. Swiss companies must adapt, entailing additional work.
Swiss authorities call for ideas for clearing ammunition from lakes
This content was published on
The Federal Office for Armaments, armasuisse is seeking ideas for the environmentally friendly and safe recovery of ammunition from Swiss lakes. The three best ideas will receive a prize of CHF50,000 ($58,389).
Kate Winslet to receive Golden Icon award at Zurich Festival
This content was published on
The upcoming 20th edition of the Zurich Film Festival will feature a star guest: Oscar winner Kate Winslet is coming to Zurich on October 7. She will be honoured at the festival for her career and will present her new film.
Swiss minister moots updated Japan-Switzerland free trade agreement
This content was published on
During her presidential visit to Japan Amherd reiterated Switzerland's desire to modernise the free trade agreement between the two countries.
Natural disasters cause billions in damage worldwide
This content was published on
In the first six months of the year, natural disasters caused billions in losses worldwide, with severe thunderstorms in the USA being a major factor, according to a Swiss Re Institute press release on Wednesday.
Rear seat belts save lives: a 30-year Swiss milestone
This content was published on
For 30 years now, seat belts have been compulsory in the rear seats of cars in Switzerland. Current data from the Swiss Council for Accident Prevention (BFU) and the Federal Statistical Office confirm the effectiveness of this road safety measure.
Women receive fewer painkillers than men in emergencies
This content was published on
The situation is similar in Switzerland. Three years ago, a study from Swiss intensive care units showed that women had a lower chance of receiving intensive medical care than men.
Locarno Film Festival opens with 225 screenings, 104 world premieres
This content was published on
The 77th edition of the Locarno Film Festival opens today, marking the beginning of the Maja Hoffmann era. Situated on the shores of Lake Maggiore, the eagerly awaited festival features a packed programme: 225 screenings over 10 days, including 104 world premieres.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.