The Swiss franc is like the new gold

A considerable number of dollars and Euros are coming into Switzerland, as investors see the franc as a safe place; against the debt crisis in the United States and Europe. And the Swiss are concerned with this arrival, as it increases prices without control, from the prices of coffee to the more expensive watches.

As the latest European bailout for Greece fails to avoid the credit contagion through the largest economies like Spain and Italy, the franc remains strong against the dollar and the euro.

Last Wednesday, the Central Bank of Switzerland declared the currency as “extremely overvalued” against the dollar and euro, and unexpectedly cut interest rates in an attempt to weaken the franc.