Bloomberg News

Schneider-Ammann Says Franc Remains ‘Overvalued’ Versus Euro

January 29, 2012

Jan. 28 (Bloomberg) -- Swiss Economy Minister Johann Schneider-Ammann said the franc’s overvaluation versus the euro is weighing on the economy.

“I consider the franc overvalued, purchasing-power parity is around 1.35 or 1.40,” he said at a briefing at the World Economic Forum in Davos, Switzerland, today. “From history we know that an exchange rate moves toward purchasing-power parity. But it takes time. On average, it takes two years.”

He also said that the government is ‘very content’’ with the franc ceiling of 1.20 versus the euro.

To contact the reporter on this story: Jana Randow in Davos, Switzerland at jrandow@bloomberg.net

To contact the editor responsible for this story: Simone Meier at smeier@bloomberg.net


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