Forex News – Swiss exports decline due to strong franc

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Forex News: Swiss Franc makes a new record high against EuroSwitzerland’s trade surplus narrowed to 2.0 billion Swiss francs in December according to trade data today, falling from 2.95 billion francs a month earlier. This was less than forecast.

The main cause of the decline was a big drop in exports stemming from slack foreign demand due to turmoil in the euro zone and most of all due to an unfavourable exchange rate.

The Swiss franc remains strong despite the Swiss National Bank attempt to weaken it by placing a 1.20 CHF floor against the euro on September 6, 2011. The Swiss currency remains almost 30 percent stronger than it was before the financial crisis erupted in 2008.

According to data from the Swiss Federal Customs Office on Thursday, exports from Switzerland fell by a real 1.6 percent in December to 15.630 billion Swiss francs, the. Overall Switzerland ran a merchandise trade surplus of 2 billion Swiss francs in December.

Exports to Switzerland’s main trading partner, the European Union, dropped 4.2 percent in December, as the sovereign debt crisis in the euro zone hampers growth in the region .