Switzerland might introduce controls on capital to fight the spike in the Swiss franc in case a collapse takes place in the euro zone. The measures are ones the nation has not put into place since the 1970s.
A potential exit by Greece for the euro zone has created an increase in the risk the zone may not survive. That has caused many to worry that a domino effect could take place with other nations in the euro zone that are burdened by heavy sovereign debt.
These worries have increased the value of the Swiss franc, which has been a refuge at times during political and economic turbulence. Switzerland is not a member of the European Union but is surrounded by it and is the region’s political and fiscal stability.
Because there is a serious threat of a collapse in the euro zone, the government set up a task force earlier in the year to evaluate any necessary measures it may have to take.
Worries about instability in the euro zone heightened over the last couple of weeks, putting additional pressure on the franc. Because of that, the euro has traded at or close to the floor of 1.20, the National Bank in Switzerland introduced back in September, when it traded at levels against the dollar and euro that it had not seen before.
