The Vice President of Swiss National Bank; Thomas Jordan, expressed his concerns about the recent appreciation of the Franc against majors, where he says that the rise would offset recovery and threaten growth in Switzerland.
For Switzerland's export industry, such a strong franc is a big and barely tolerable burden, Jordan said at yesterday. Given the importance of the export sector for the overall economy, its problems are also showing a negative impact on overall economic growth.
The Swiss Franc rose more than 14 percent against the European shared currency in 2010, which affected exports and reduces growth in the country. The SNB left its benchmark interest rate in December near Zero, while economists forecast the Swiss economy to expand by 1.5 percent in 2011, down from 2.5 percent in 2010.