Swiss Franc: Export strains with strong CHF – Commerzbank
Commerzbank’s Michael Pfister analyses how the strong Swiss Franc (CHF) and an undervalued Chinese Yuan (CNY) are weighing on Switzerland’s export competitiveness.
Commerzbank's Michael Pfister examines the impact of the strong Swiss Franc (CHF) and undervalued Chinese Yuan (CNY) on Switzerland's export competitiveness. While Switzerland has gained market share in some export markets between 2019 and 2024, this advantage disappears when precious metals are excluded. The Swiss franc is the only G10 currency overvalued against the US dollar by more than 10% in terms of purchasing power parity.
Consequently, Switzerland's export competitiveness appears to be under pressure due to the franc's appreciation, particularly in sectors such as medicines, chemicals, and machinery. However, watches remain resilient, indicating sectoral differences in the impact of the franc's appreciation.
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