BERN: Swiss Federal Customs Administration stated that country’s Exports fell 2.8 per cent in real terms last month, compared to a 3.1 per cent rise in January, while imports soared 3.1 per cent, after shrinking slightly at the start of the year.
Switzerland’s trade balance narrowed last month as exports shrank sharply and imports jumped following the Swiss National Bank’s decision to scrap the franc’s ceiling versus the euro, sending the currency soaring. While the overall trade balance contracted from SFr3.4bn in January to SFr2.47bn last month, according to the Swiss Federal Customs Administration.
Money gushing into the traditionally safe haven of Switzerland in the middle of the eurozone crisis compelled the SNB to introduce a ceiling on how far the franc could appreciate versus the euro.
But the ECB’s plans to start quantitative easing heaped pressure on that ceiling and eventually forced the SNB to scrap it entirely in mid-January. That triggered a wild 40 per cent spike in the franc, and the currency remains about 13 per cent stronger versus the euro than at the start of the year.
That has naturally hurt Switzerland’s traditionally strong exports, but boosted the buying power of locals when buying foreign goods.
