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.
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