What does higher cost of Swiss currency bring?
Switzerland has abandoned the fixed rate of exchange against the euro whereupon the cost of the Swiss franc has soared by as much as 30 percent. Experts say this situation works in favor of the EU economies because not just the franc but also the dollar has appreciated in relation to the euro.
"In this way, the import of goods to the EU from the USA or China will become more expensive. This is good for the European economy in the middle run because it will become more competitive. In general, this is also good for Macedonia too, because the Macedonian denar and the Macedonian economy are largely tied to the EU and this will make the Macedonia export sector more competitive as well," stock market analyst Kosta Kostadinovski has told Alsat TV.
Monetary policy experts say these changes will not have any negative effects for the Macedonian economy and citizens, because there are almost no credits in Swiss francs, while those having savings or receiving payments in Swiss franc may only gain.
"This is only temporary and the situation will gradually subside. In Macedonia the consequences are not as pronounced as they are in Serbia and Croatia where a great many credit beneficiaries have a currency clause in Swiss francs," says former National Bank Governor Ljube Trpeski.
Trade between Macedonia and Switzerland last year totaled 118 million euros, where exports amounted to 47 million euros.
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|Title Annotation:||BUSINESS NEWS|
|Publication:||INFOMAC Daily News Service|
|Date:||Jan 20, 2015|
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