SNB Chief Says Switzerland Will Keep The Franc

by Carla Johnson, Investors Offshore.com

01 March 2002

Speaking at the British-Swiss Chamber of Commerce in London on Tuesday, President of the Swiss National Bank, Jean-Pierre Roth, revealed that the country is set to hold onto its currency for the foreseeable future, observing that Switzerland is likely to 'remain an island in the middle of the Euro-ocean for years to come.'

Drawing parallels between Switzerland and the UK in their attitude towards European monetary integration, Mr Roth told those attending the meeting that an independent Swiss franc is likely to be a great asset in the future, and should attract additional interest in the country's financial services sector.

The SNB Chief observed that for the long-term investor, the stablity of the currency, and the knowledge that it will retain its external value and buying power will be a comfort. However, he also suggested that Switzerland might provide a port for short-term investors in the event of any future economic storms:

'In situations of crises, security conscious investors too, even those with shorter horizons, demonstrate through their actions that the Swiss Franc has special merits,' he observed.

Mr Roth also defended his country's policies on banking secrecy, arguing that they do not represent an obtacle to the elimination of money laundering and terrorist financing.

'Both the disclosure of certain information relating to bank clients and the protection of privacy in the financial sphere arise from fundamental ethical convictions that are worth protecting,' he asserted.

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