In his speech yesterday, President of the Swiss National Bank Hildebrand confirmed the growing concern of local politicians on the impact of currency strength in the economy and exporters. Last year, the franc rose by 16% against the single currency, as investors sought protection from the sovereign debt crisis of the euro. In response, the SNB has carried out an unprecedented currency intervention, which, in general, proved to be unsuccessful and very costly. Exports account for almost half of the economy, which explains the special sensitivity to the value of the currency. Hildebrand suggested that the threat of deflation in Switzerland has passed, and in the middle of last year it was a real threat.An interesting fact is that the franc falls against the euro so far since the beginning of 2011, the cross pair EUR / CHF has risen from 1.25 to 1.30 of the moment. Partly this can be explained by the recent softness of the franc and the growing risk appetite of retail and institutional investors. Last year, the Swiss franc was seen by many as the preferred currency for saving money at a time when there were serious concerns about the major currencies in terms of requirements for the preservation of its value.
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