I found the recent Franc / Dollar parity quite unusual. It means that when I travel abroad (outside Switzerland) in many countries which use the USD, the prices can be translated back to Francs 1:1. Often the comparison is bizarre.

Since the Franc is at an all time high, I even bought some USD (for less than the Franc equivalent) just to lock into the rate.

It must also mean that Switzerland is now even more expensive for Americans. I have not been to the US for a few years, but would be interested to hear a few comparisons - what does a Starbucks coffee cost (incl. US Sales tax, tips and all unquoted extras) vs. the Swiss price?

How about a Big Mac (I don't eat them, they are useful for comparison).

What would the pricing ratio be CH:US for other common goods and services?

How about views on the new natural level for the CHF/USD rate?

Here's a link to the most up to date Big Mac Index
http://www.oanda.com/currency/big-mac-index

We're no.3 behind our friends in the North

1. Norway USD7.38
2. Sweden USD6.95
3. CH USD6.50

Ukraine (USD1.80) is cheapest by the way, behind China (USD1.98) and Sri Lanka (USD1.89)


and a bit old, but also the Starbucks index.
http://flash.lakeheadu.ca/~kyu/Measu...buck-Index.pdf

I don't think anyone needs the internet to remind them how expensive it is here though.

Also quite interesting, here's how long it takes you to earn the cash for your scran. Compiled by UBS, but unfortunately no CH.
Maybe they didn't want to show off.
http://www.economist.com/node/14288808

But this is the same in other countries too for example when I travel to the UK. It was once CHF:GBP 2.40:1 now it's more like 1.60:1. It means that I get more things for my Swiss franc compared to a few years ago. That's how it works right. It's not unique to the USD. In terms of countries using the USD, there's not many.... a few in South America and other broken states. Big Mac/Starbucks coffee index whatever is a better guide to the cost of living I agree.

Yes, it also makes it difficult to sell services as we still charge in Swiss Franks and for most people the prices sound astronomical now...

I was in the US a month ago (Boston) & many things now seem very cheap versus Swiss - like eating out (2 lobster special us$29) & car hire ($80 per day incl insurance), taxis (highest charge was $11 in the city), jeans (3 pair Levis for $80), eddie bauer outlet shirts & pullovers ($19 - $29)
Surprising thing is the high hotel prices; difficult to find any good hotel for less than $400 per day (incl. tax but not car parking) so not a cheap holiday

ahem how about a more important matter.....CHF=AUD parity

Basically the CHF kicks a* at the moment. It's great for going abroad.

Can only speak about Starbucks myself, but it is definitely NOT at a 1:1 pairity wth Switzerland. The Swiss Starbucks is even more obscenely over priced than the american. Something that would cost about 4-5 dollars, here costs about 8-9chf, I see that as a huge inflation.

Yep. The price of Starbucks here is absolutely astonishing. Just the thought of it makes me kinda mad

But isn't the service and quality better here. Also, people earn such high wages here that they are happy to pay extra for high quality coffee.
Who knows what they do to the coffee in the States, that they are able to charge an inferior price of 5 bucks

The service and quality is not 62 times better here. Seriously it's Starbucks not The Ritz. Looking at the link provided earlier its pretty clear that based on PPP the price of Starbucks CH is freakin OUT-OF-CONTROL.

I think that's 62% better, not 62 times better....
but to answer your point, I imagine it's actually exactly the same.. .average coffee and average service all round.

I've recently returned from a vactaion in Texas and some prices I remember paying

excellent 12oz steak in small family-style restaurant, 13$, would have cost me at least 40CHF here
meal in Chinese restaurant, including drinks, 11.50$, never seen anything like it here
pizza in pizzeria, 8.50$, here it would have cost me around 20CHF
beer in really snobbish bar, and everybody else was compaining how expensive it was, 5$, that sort of place might have charged 15CHF here.
day ticket for Dallas DART transit system 7$, and that covers an absolutely massive area.

On the other hand we payed 60$ for a taxi from the airport to the place we were living because there was no reasonable public transport connection going that way. Also spent 60$ in a Spanish tapas restaurant which in Switzerland would have cost me 40CHF maximum. And in one bar I was charged 20$ for a Scotch whisky. In Zürich I've never payed more than 13CHF or thereabouts.

From my prospective it is about USD loosing its value (as well as GBP and EUR). IF you look at most of the growing economies (BRIC), Precious Metals (Gold, Silver etc) and commodities they are almost same in CHF but now much higher in USD.

So it is easy for one to buy the USD denominated goods but the people who earn USD will find it difficult the purchase same thing (Eg. Oil, Gold or other commodities) as they need more dollars now. It in a way is effect of USD devaluing its currency to fund the programs like War and protecting Bankers interest by printing money. Well this is just a small gist but the whole thing is much more complicated and might ignite a huge debate.

There is actually a different I've noticed in the service between America and Switzerland and that is that when you order 'IN' (meaning that you get a real ceramic mug, not toss-away) there are people to clean up your tables. But other than that (which is necessary) there is nothing wildly different about the service. I actually found the counter people a little pushy with trying to get you to order more. I just wanted a plain black filter coffee (boring, I know but still that's what I wanted while I waited to meet someone). He was discouraging me from ordering that (also it was the cheapest thing on the menu -- I think almost 4 francs or maybe 5 for a plain black filter coffee!

Anyways, dont agree with the 62% service claim.

The exchange rate is hovering at $1.075:1CHF, and even the currency exchange at Dulles airport is buying at that rate (which suggests that the Franc might be valued higher.

Of course the dollar has been weak for some time, but I can remember before the recession, the rate was $1.00:1.25CHF.

I'm curious if anyone out there thinks that the USD and other currencies will sustain this weakness against the Franc.

psstt... it's 62% over-valued, not 62 times.
slight difference

A very good friend of mine is the states used to work in a Starbucks and let me tell you that quality in the cofee is not less, but salary of employees

That's 1.62 times, not 62 times!

Tom

When I first came here (1982), the exchange rate was 2.3

When I moved here in 1986, it was about 1.9, now it's half that.

So, historically speaking, the USD has been falling against the CHF since WW2.

No reason to expect that to change.

Tom