Soaring Swiss Franc Tests Mettle Of Smaller Firms

Soaring Swiss Franc Tests Mettle Of Smaller Firms by Matthew Allen, swissinfo.ch

Small and medium-sized enterprises (SMEs) – the bedrock of the Swiss economy - face a survival of the fittest test following the Swiss National Bank’s (SNB) decision to axe its CHF1.20 exchange rate peg against the euro.

Thursday’s surprise SNB announcement saw the franc soar against the euro, adding some 20% to the cost of Swiss exports to its main trading partner. In the panic that followed, several organisations warned of dire consequences for many Swiss firms.

“The Swiss franc was overvalued even at the euro exchange rate of CHF1.20,” Swissmem, the umbrella body for the machine building, electrical engineering and metal industries, said in a statement. “A...