Swiss chem trade group wants franc-euro currency peg to continue

29 June 2012 15:33  [Source: ICIS news]

LONDON (ICIS)--Switzerland’s currency peg to the euro must be enforced with determination to help the country’s chemicals and pharmaceuticals producers cope amid the ongoing eurozone debt crisis, a trade group said on Friday.

Switzerland’s central bank last year pegged the Swiss franc (Swfr) at a minimum rate of Swfr1.20 to the euro as a rising franc put pressure on the competitiveness of Swiss exporters.

Developments in the European sovereign debt crisis are likely to continue to keep upward pressure on the Swiss franc for a long time to come, trade group scienceindustries, which represents Swiss chemicals and pharmaceuticals firms, said.

The group said that the chemicals and pharmaceuticals industries make the biggest contribution to Swiss exports. 

As such, the industries are more affected than others by the ongoing upward revaluation of the Swiss franc, the group said.

“The [enforcement of the] minimum exchange rate will increase the planning reliability of companies,” it added.

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy blog

By: Stefan Baumgarten
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