Swiss economy minister says SNB working to weaken franc
[ZURICH] The Swiss government sees the country's central bank working towards bringing the Swiss franc to purchasing power parity, which is well above 1.20 francs per euro, Switzerland's economy minister told parliament on Wednesday.
"The government acknowledges that the Swiss National Bank is working hard to resolve the purchasing power relationship with respect to main markets in the European Union, and with them the euro, so that the we travel in the direction of purchasing power parity," Minister Johann Schneider-Ammann said. "This journey is not yet finished, as purchasing power remains significantly above 1.20 Swiss francs per euro."
Mr Schneider-Ammann said the government remained confident in the independent SNB, which last week signalled it will keep interest rates negative for the foreseeable future and was not targeting a specific exchange rate for the "significantly overvalued" franc against the euro.
The euro now trades at around 1.0850 francs.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
US official urges China, Russia to declare only humans, not AI, control nuclear weapons
Banking giants race to Riyadh as MBS steps up pressure campaign
Biden now calls ally Japan ‘xenophobic’ along with China, Russia
Japanese companies struggle with yen’s continued weakness
Australia’s March goods trade surplus narrows to more than 3-year low
Hong Kong holds rate as Fed signals inflation concerns