Euro rate drops further and reaches 1,097. How does the SNB react?

The question now is, how will the SNB react? Circles of the Swiss export industry are increasing the pressure to act. Exporting SMEs and other companies that earn most of their turnover in euro must sell euro and buy franc to finance spending in Switzerland. With a low euro exchange rate, companies receive less money if they change euro in CHF.

In addition, the SNB must also look to other central banks, which sugeest an increase in interest rates in the near future. If the SNB does not follow them, the CHF will continue to strengthen. The only option would be to intervene on the market by selling francs and buying euros. However, this move would lead to a further inflation of the balance sheets, which experts consider risky. Before that happens, we can continue counting on a strong franc.

The 300,000 frontaliers who live in Switzerland and live abroad are happy about this development. You can now change franc to euros at a rate as good as two years ago. If you are looking for the best euro-franc exchange rate in Switzerland, you should definitely check out the currency converter of ExchangeMarket.ch.