Swiss franc reaches parity with the euro
It has not happened since 2015 (when the Swiss central bank abandoned the minimum threshold of the exchange rate of 1.20 Swiss francs per euro) that there was parity CHF/EUR
The war in Ukraine pushes up the Swiss franc, which has always been considered a safe haven asset and in the exchange rate with the euro reached 1:1. At 2 a.m. it had even reached an exchange rate of 0.9973 for one euro.
The last time it happened was in 2015, when the Swiss central bank (SNB-Swiss National Bank) abandoned the minimum exchange rate threshold of 1.20 Swiss francs per euro, which it had adopted in previous years to prevent the franc from appreciating excessively.
The franc has been Switzerland’s only currency since 1848
Not only the Swiss franc flies
So-called safe haven currencies (currencies that belong to countries with a stable economy, so as to maintain their value compared to other currencies in times of economic uncertainty), are gaining ground.
The euro-dollar exchange rate is recording one of the worst moments for the euro in the last two years. From the point of view of the dollar, on the other hand, the situation is favorable and looks set to last.
The euro has also collapsed against the pound, recording its lowest value since 2016.
The euro is also losing ground against the yen, dropping significantly.
The eastern nations of the European Union that are not part of the Euro are also intensifying market interventions to protect their currencies.
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Higher costs for the Eurozone
For consumers in the Eurozone, the weak Euro means even higher costs for imported goods from abroad and exorbitant prices for oil, gas, industrial metals and agricultural commodities.
Sanctions against Moscow will have repercussions on the entire global economy, but Europe will be the most affected due to its dependence on trade with Moscow; the exposure of its banks to Russia; and the Russian gas and oil on which Europe is heavily dependent.
