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SWITZERLAND DOES NOT foresee a break-up of the eurozone – but is nonetheless drawing up an action plan in the event of its collapse, the country’s central bank chief said today.
Thomas Jordan, who became chairman of the Swiss National Bank last month, told the SonntagsZeitung newspaper that a working group was discussing measures to combat any strengthening of the safe haven Swiss currency.
The bank intervened in September to stem the rise of the Swiss franc which had soared as investors sought a secure place for their cash, hurting Swiss exports and the tourism industry.
Jordan said the eurozone crisis had worsened in recent weeks and he foresees bumpy times ahead.
“The working group is focussing mainly on instruments to combat a strengthening of the franc,” said Jordan. ”We have to be prepared for the scenario of a currency union collapse, although I don’t think that will happen.
“One measure would be capital controls, that’s to say controls directly influencing the flood of capital into Switzerland,” he said, declining to give further details.
Jordan said the bank would defend its exchange rate floor against the euro of 1.20 francs. The franc closed at 1.2014 on Friday.
The SNB has consistently said it will enforce the minimum rate and is prepared to buy unlimited quantities of foreign currencies if necessary.
The cap was introduced after the franc posted a sharp gain in value last year, going from 1.23 to the euro at the beginning of July to less than 1.05 a month later.
“Maintaining the minimum price is the monetary policy that we will continue with determination for the foreseeable future,” Jordan said.
The euro had extended its slide against the dollar on Friday, dipping below $1.25, under pressure from uncertainty over the future of Greece in the eurozone, and the risk of contagion from its debt crisis.
Jordan succeeded former bank head Philipp Hildebrand who quit in January over a controversial dollar trade by his wife.
All offset against increased Bord Gais,Eircom,transport,home and health insurance
This cost of living study takes all of those into account. Unless Mercer are completely incompetent.
Are they serious? Food, booze, energy, mortgages etc, all still bloody expensive!
Food is not actually that expensive, one trip to Lidl per week fills my cupboard for under €30. That’s food, drink, lunches, dinners, the lot. As for booze, it’s a luxury (which I quite enjoy), but as a luxury the price depends on supply and demand.
And tax….
The price of a luxury depends on supply, demand and tax folks…
Would you not shop in an Irish supermarket?? I get that Lidl and Aldi are great if you have a big family and that they employ Irish staff, but most of what they sell are imports and the profits go back to their German headquarters.
Do a weekly shop in Superquinn and you’ll find it sore when you sit down for a couple of days.
Just aswell we have Dunnes and Supervalue so!
Ann, you obviously don’t realize that Lidl and Aldi actually source far more products in Ireland than many competitors such as Tesco and Dunnes. Much of the fresh produce is sourced from Irish farms, and packaged meats, sausages etc are often of Irish origin.
Not anywhere near where I live Ann, I’m afraid.
A pint is still obscenely expensive.
That’s the only thing that matters.
paying 8 euros for a pint of plain here in sweden : (
Precisely, it’s a key economic indicator.
It reflects the price of grain (which ref;ects high prices for all other foods) and the levels of taxation.
Probably reflective of the drop in wages, jobs etc while the same time the rise in taxation and charges. I bet its still as expensive live in for the people who work, live and survive in
Increases in taxes and charges would increase the cost of living, so I’m not exactly sure what you are trying to say.
Good its an overpriced dump anywya
Typical ignorant culchie comment.
What a parochial, low-life comment.
Those who gave the thumbs down were annoyed at not knowing what parochial means!
From the link:
Two main factors determine a city’s position in Mercer’s Cost of Living rankings:
the relative strength of the relevant currency against the US dollar in the 12 months between ranking (March 2011 to March 2012 in this case); and
price movements over the 12 month-period compared to those in New York City as the base.
So the weakening of the euro in relation to the dollar is a contributing factor as well.
In fact, again according to the link “Most European cities drop in the ranking” except for Geneva in Switzerland which is non Euro. Since this is a comparative study it doesn’t really show if the cost of living has fallen in Ireland, only that it has fallen in comparison to other places. This while the Dublin Chamber of Commerce are right in saying that the city is gaining competitiveness, it is not actually because of anything we have done.
So rather then the headline saying that the cost of living has fallen in Dublin, it should really say that the cost of visiting Dublin has fallen if you are coming from outside the Eurozone. Which is good in itself, but means little to those of us who do not make our living from tourist related activities.
That is exactly the point I was making earlier on which seems to have gone over the heads of some of the readers
I found temple bar very expensive on little womens xmas, me and the girls could barely pay for the taxi
It’s where all the tourists and their wallets go. What did you expect?
And where they get mugged by the jackines
This is a US ex-patriate focused survey. It uses New York and the US dollar as a base. New York is 33rd on this list. If you were a resident of New York now and had to move to Dublin, which is #72, you would find that the overall cost of living is lower in Dublin than it is in New York, whereas if you moved to Tokyo you would feel the pain.
Maybe if you are visiting. Energy, communications and insurance are robbery.
That can’t be right! I haven’t been this broke since I was 16!
Moscow is not a city in Europe -,-
it is, you know
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