The Swiss National Bank Vice President Thomas Jordan has announced that the central bank is looking at “a whole range of options” to avoid getting the franc from putting the commodities in Switzerland very expensive. This month, the Swiss franc was up at its record high this August. Swiss goods are becoming very expensive in the country. A cup of coffee in Zurich is $8.30 with a franc at $1.2816.
According to Christoph Blocher who is a billionaire entrepreneur, “The franc is catastrophically overvalued. It is almost like economic warfare – to wage a war, you must use all measures at your disposal, and you must win.”
The currency of Switzerland is calculated to be 39% higher than the euro and this is based on the purchasing power parity from the Organization for Economic Cooperation and Development.
According to the ABB Ltd who is the world’s biggest manufacturer of power transmission gear, “That is a headache.” The company bought more parts from euro region suppliers to be able to have the right amount of supply for its Swiss factories. Workers from the Lonza Group AG which is a chemicals manufacturer based in Basel, are working more hours than usual but without extra payment. VonRoll Infratec AG, a company that makes piping systems, are paying wages in euros.
The Swiss franc was up as much as 1.3% today and traded at 1.1181 in the afternoon in Zurich from 1.1329 the day before. A Swiss franc trades at 77.85 centimes.
Tags: Thomas Jordan, Swiss franc trades, abb ltd, Vice President Thomas, power transmission gear, lonza group, region suppliers
