45 Percent Of Swiss Companies Afraid Of Weak Euro Impact

A survey by the Swiss National Bank (SNB) says that almost half of the Swiss companies afraid of the negative impact of the strong Swiss franc against the Euro.

Between October and December 45 percent of the Companies showed such fears, which is significantly higher than in summer as only some 28 percent of the companies expressed their worries.

The National Bank reported, especially export-oriented companies in the manufacturing industry will suffer from the impact of the Strong Swiss Franc.

In addition to lower margins, the companies also suffer from lost sales, as the SNB wrote.

Only 20 percent were able to offset the currency losses due to charge higher prices. In addition to hedging strategies, the company also reduced production costs, but rarely present job cuts.

On the other hand there are no clear picture with tourism and trade sectors but for the banks, the impact of a strong Swiss franc will change from neutral to slightly negative. Hardly actions give it to transport companies, insurance companies, employment agencies, dealers and trust in the healthcare industry.

The strong franc has no significant impact on the business 42 percent of Swiss companies, almost the same size as those whose course of business is suffering from the currency situation. For 13 percent of the companies the consequences of the strong franc are even positive. These companies take advantage of the weakness of foreign currencies to build liquidity and to reduce prices.

The Swiss franc has become strong since the early summer, especially against the floundering of the Euro drastically. Last week, the Euro fell temporarily below the value of CHF 1.25.

More than 50 percent of the Swiss economy depends on the export with the EU.

The SNB had decided last week to maintain in force since March 2009 monetary policy framework. That way the desired target range for the authoritative the SNB’s monetary policy interest rate three-month Libor market at 0 to 0.75 percent and the target value at 0.25 percent.


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KUNA

KUNA is the Kuwait News Agency

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