News » Swiss Government Considers Further Measures to Weaken Franc

The Swiss franc declined after the government signaled that it considers measures to further weaken the currency as its excessive strength continues to hurt the nation’s exporters.

 

Finance Minister Eveline Widmer-Schlumpf signaled that the government considers taking steps for depreciating the franc. The minister said:

 

If the situation deteriorated further in the foreign- exchange markets, we would have the opportunity to take certain accompanying measures.

 

Among the considered measures were restrictions and levy on transactions of the franc and foreign currencies as well as negative interest rates. Widmer-Schlumpf empathized that the government is reluctant to take such drastic steps, but it may be forced to do so by the deteriorating economic conditions.

 

Such words don’t mean that the lawmakers would act immediately. The finance minister already made the similar statement on December 7. The Swiss National Bank refrained from changing the ceiling for the franc on its last policy meeting. That means that the policy makers aren’t in a hurry to act, but the signs that they are unhappy with the Swissie’s strength undermine the currency.