SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate

Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by sz4kerto on Thursday January 15, 2015 @06:14AM (#8891903)

Not too good news for developers working for foreign companies in Switzerland. (Google, etc.). They just got 15% more expensive without a salary raise.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by furyg3 on Thursday January 15, 2015 @07:34AM (#8892178)

This is incorrect. Nothing changed as they are paid in CHF and spend money in CHF. If they buy products from abroad, their spending power just increased by 15%.

It's not good news for Google, etc. as their Swiss employees just got 15% more expensive.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by tonfa on Thursday January 15, 2015 @08:29AM (#8892360)

Also the biggest change is versus EUR (who was crashing vs USD). CHFUSD wasn't affected as much if you compare with previous years rates.

Additionally every large company does currency hedging to protect itself from those events.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by seanmcdirmid on Thursday January 15, 2015 @08:53AM (#8892449)

Google must also earn some CHF to offset R&D costs (and maybe a subsidy also from the Swiss gov?).

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by xianshou on Thursday January 15, 2015 @06:19AM (#8891918)

But all their CHF accounts just got 15% more valuable. I'd consider that excellent news!

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by s3nnyy on Thursday January 15, 2015 @06:41AM (#8891985)

I get my salary in CHF and I am quite happy as I transfer it regularly to EUR.

Nothing changed for my Swiss colleagues who don't shop in Euros.

Here the official reasoning of the SNB: http://www.snb.ch/en/mmr/reference/pre_20150115/source/pre_2...

More of my experiences within Switzerland you'll find in here: "Eight reasons why I moved to Switzerland to work in IT" http://goo.gl/EIX4UX (Full disclosure: If you're from the EU and looking for a tech-job over here, I'd be happy to help out).

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by levosmetalo on Thursday January 15, 2015 @08:52AM (#8892444)

> I get my salary in CHF and I am quite happy as I transfer it regularly to EUR.

If I were doing so I would hate myself for not keeping as much as possible in CHF and just converting today for a 15% more EUR.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by Ecio78 on Thursday January 15, 2015 @11:21AM (#8893352)

that's exact me, I worked in Switzerland for a bit less than a year and I kept an account there with what I earned.. I was planning to close my account as I've now moved but waited and today I woke up with this news. I just had a +15/20% on my money there :O

now I just need to decide if I should keep them or convert to EUR and close the account :D

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by MatthiasP on Thursday January 15, 2015 @12:21PM (#8893798)

Definitely wait atleast until the elections in Greece are over.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by levosmetalo on Friday January 16, 2015 @10:59AM (#8899671)

That's also a speculation. If decision to kick out Greece comes, Euro might just end up a bit stronger.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by sz4kerto on Thursday January 15, 2015 @07:08AM (#8892086)

Well, in the short run, it's good news. In the longer run, it can mean hiring freezes and/or layoffs -- it's not really possible that 15% price increase does not change the demand at all.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by rayiner on Thursday January 15, 2015 @09:30AM (#8892602)

Living in Europe seems so exotic to me, what with all the currency exchange and whatnot. I don't think I've even seen non-USD money in 5-6 years.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by icebraining on Thursday January 15, 2015 @10:19AM (#8892877)

That was more true fifteen years ago than today. I never see anything besides Euros in my daily life, and I live in a tourist destination!

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by blfr on Thursday January 15, 2015 @07:12AM (#8892102)

Nothing changed for my Swiss colleagues who don't shop in Euros.

Prices of foreign goods in Switzerland should slowly converge to the lower lever.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by patrickk on Thursday January 15, 2015 @09:46AM (#8892675)

Email sent!

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by FredericJ on Thursday January 15, 2015 @07:22AM (#8892138)

Aren't Google Zurich employees payed in CHF?

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by dola on Thursday January 15, 2015 @07:39AM (#8892205)

They are.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by jevgeni on Thursday January 15, 2015 @08:28AM (#8892358)

The point sz4kerto is making, as I understand it, is that the staff cost just jumped for these companies, meaning that some companies might seek to freeze any new hires or even lay off some workers.

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Re:SNB Unexpectedly Gives Up Cap on Franc, Lowers Deposit Rate by oldspiceman on Thursday January 15, 2015 @09:26AM (#8892583)

German groceries just got way cheaper.

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