Swiss franc increases in value

The Central Bank of Switzerland has announced it gives up on a three –year efforts to maintain the value of franc at low level. It resulted at Swiss franc value increase all of a sudden.

Only a few minutes after the bank announced it was canceling the limit which prevented euro to go below 1,2 francs, Swiss foreign currency increased in value for 0,8517 for one eur, France presse reports.

At 13 o’clock, the value of two foreign currencies almost balanced so for one euro one should have set aside 1,02 Swiss francs.

The National Bank of Switzerland announced that the measure which it implemented in September 2011 in order to protect Swiss economy from serious risks due to European debt crisis is no longer justifiable.

Strong franc is particularly problematic for Swiss exporters who had to decrease prices drastically to remain competitive.

The bank also said it will lower average interest rate to s 0,75 from minus 0,25%.

Shares at Swiss stock markets decreased by 6,66% after the news that franc exchange rate is no longer related to euro.