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-   -   Weak Swiss Franc (https://www.englishforum.ch/finance-banking-taxation/5671-weak-swiss-franc.html)

Mr. Happy 05.08.2011 14:24

Re: Weak Swiss Franc
 
Quote:

Originally Posted by Rach_UK (Post 1289380)
Hi all,

I'm moving to Zurich at the start of September and before then I have to transfer my deposit and first months rent into a Swiss account.

The exchange rate has gotten worse and the total of my deposit/rent (in ) keeps on going on up.

Do you think it will get any better, or do you think I should just transfer it today and cut my losses?

Thanks,

Rach

PS- I am more into languages than economics hence why I've asked you lovely knowledgable people :)

I reckon transfer today ..

Mitziem 05.08.2011 14:26

Re: Weak Swiss Franc
 
Quote:

Originally Posted by Mowvich (Post 1289209)
Will it even exist? :rolleyes:

Where would it be? And what would replace it? (genuine questions)

05.08.2011 14:28

Re: Weak Swiss Franc
 
Quote:

Originally Posted by cricketer (Post 1289396)
hands up. Ive been scr++ed.:msnsad:

You had a big smile on your face when you thought you were winning at 1.9 though right? :D

Mr. Happy 05.08.2011 14:37

Re: Weak Swiss Franc
 
Quote:

Originally Posted by porsch1909 (Post 1289423)
You had a big smile on your face when you thought you were winning at 1.9 though right? :D

hang on but all gains and losses are relative..

05.08.2011 14:39

Re: Weak Swiss Franc
 
Quote:

Originally Posted by Mr. Happy (Post 1289440)
hang on but all gains and losses are relative..

I transfer a set amount to the UK every month. I came here almost 2 years ago. I save just over 100chf per transaction now.

It's not a huge amount...but it makes me happy :dunno:

Paulus Camillus 05.08.2011 16:52

Re: Weak Swiss Franc
 
Quote:

Originally Posted by Rach_UK (Post 1289380)
Do you think it will get any better, or do you think I should just transfer it today and cut my losses?

In my opinion, a safe bet is to do 50% now, and 50% at the planned date.

A more risky path is to choose transferring 100% now, or 100% at the planned date.

If, in retrospect, one could see a big difference between now and the planned date, it is more likely that the good date for transferring pound to CHF is now and not later. I "feel" very unlikely that, within a few months, the British pound would get quite stronger compared to CHF. The opposite, on the other hand, seems possible.

/Paul

LewisJD 08.08.2011 11:36

Re: Weak Swiss Franc
 
Ouch... have just converted Sterling for Swiss Francs... if only it was weak. :rolleyes:

No wonder tourism in Switzerland has suffered this Summer.

carver 08.08.2011 17:15

Re: Weak Swiss Franc
 
http://www.bbc.co.uk/news/business-14442584

Quote:

Swiss franc rise prompts emergency meeting

The Swiss government is holding an emergency meeting on Monday on how to respond to the financial turmoil.

Currency investors have been piling into the Swiss franc, which - like gold - is popular in times of trouble because of its relative safety.

But it has meant the value of the Swiss franc is rising against other currencies, hurting exporters because their products are more expensive.

The US dollar hit a record low against the franc on Monday.

Switzerland's SMI stock index was down almost 2% in morning trading, with export-dependent Swatch Group down more than 4%.

On Monday, the Swiss franc was changing hands at 0.7485 centimes to the dollar - a drop of almost 30% from a year ago.

The franc also strengthened 0.3% to 1.0917 per euro, despite the European Central Bank said be intervening in the financial markets to help bring stability.

According to the Bloomberg news agency, the franc is higher this year against 16 major currencies.

"The Swiss franc is the gauge of how nervous the market is," said Jane Foley, a foreign exchange strategist at Rabobank International.

In January, Switzerland's Federation of Small and Medium Businesses described the franc's appreciation as a "crisis".

It was unclear what measures the Swiss government might consider to depreciate its currency.

The Swiss central bank has in the past intervened in the currency markets to halt the franc's rise against the euro, but with only limited success.

Last week, the country cut its interest rates in a bid to make its currency less attractive.

fatmanfilms 08.08.2011 17:42

Re: Weak Swiss Franc
 
Isn't the rather amusing, the by product of this that the Swiss Banks have lent out billions to foreign nationals and it's banks are at huge risk of imploding if the currency appreciates too much, meaning those loans can no longer be serviced.

Which therefore would mean the flight to safety is in fact a flight to bankruptcy!

Gav 08.08.2011 17:57

Re: Weak Swiss Franc
 
Anyone know if the rumours of imposing negative rates/charges on non-residents CHF accounts are likely to materialise? I would guess that the likelihood is quite high since the Swiss have done it a couple of times in the past.

I've got a small sum of CHFs left in a Swiss account which I already pay pretty punitive fees on, but I figure it's worth it to have the utility of a Swiss account. Obviously if I see another chunk of it disappear in negative interest rates or government charges every month I won't keep it there. My plan is to change all of that into physical cash (it's only a few thousands) but hopefully keep the account open for possible future use by continuing to pay the banking fee.

Anyone know if that's likely to fly with the bank or they will insist on closing the account when I reduce the balance to zero?

I have a rather larger CHF sum held in a HSBC 'offshore' account in the UK. Anyone know what the likely effects will be on those savings? I would have thought that only money in Swiss accounts would be affected but there could be some sort of knock-on effect.


I'll say one thing - negative interest rates will certainly make me take my money out of the bank .... and put it into Gold and physical cash. Can't see that being good for the banks/country as a whole. Beware of what you wish for, central banks, for it may come back to bite you.

fatmanfilms 08.08.2011 18:01

Re: Weak Swiss Franc
 
Quote:

Originally Posted by Gav (Post 1293186)
Anyone know if the rumours of imposing negative rates/charges on non-residents CHF accounts are likely to materialise? I would guess that the likelihood is quite high since the Swiss have done it a couple of times in the past.

I've got a small sum of CHFs left in a Swiss account which I already pay pretty punitive fees on, but I figure it's worth it to have the utility of a Swiss account. Obviously if I see another chunk of it disappear in negative interest rates or government charges every month I won't keep it there. My plan is to change all of that into physical cash (it's only a few thousands) but hopefully keep the account open for possible future use by continuing to pay the banking fee.

Anyone know if that's likely to fly with the bank or they will insist on closing the account when I reduce the balance to zero?

I have a rather larger CHF sum held in a HSBC 'offshore' account in the UK. Anyone know what the likely effects will be on those savings? I would have thought that only money in Swiss accounts would be affected but there could be some sort of knock-on effect.


I'll say one thing - negative interest rates will certainly make me take my money out of the bank .... and put it into Gold and physical cash. Can't see that being good for the banks/country as a whole. Beware of what you wish for, central banks, for it may come back to bite you.

HSBC will probably hold the account in CH & a hugh amount of CHF are held in foreign banks so I expect they will also be caught.

Gav 08.08.2011 18:10

Re: Weak Swiss Franc
 
Quote:

Originally Posted by cricketer (Post 1289396)
hands up. Ive been scr++ed.:msnsad:

As another poster has said, it's all relative.

I converted a wodge of my savings to GBP at just under 2 CHF to the pound but luckily held some back.

To be honest I felt happy enough doing it as when I left Switzerland the rate was something like 2.5 or even a bit worse so I really felt that I'd benefitted. (I'd seen it go as low as 2.7 or so when I was living in CH and going back to the UK on visits in the early part of the decade).


To cheer you up about how bad things could have been, I first started thinking about converting some CHF to GBP in Aug 2007, four years ago. I started tracking the rates and this is what xe.com was showing as the rate at the time:

Quote:

Live rates at 2007.08.15 09:39:33 UTC

1.00 CHF = 0.414355 GBP

Switzerland Francs United Kingdom Pounds
1 CHF = 0.414355 GBP 1 GBP = 2.41339 CHF

:eek:


As I said, it was 2.5 not so long before that and even lower in the years before that.


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