Image Source: CNBC

 

BY JUSTIN WHALEY

ANCHOR CHRISTINA HARTMAN

 

You're watching multisource business news analysis from Newsy.

 

 

Mounting fears about a global recession have investors scrambling for Swiss francs.

With all that attention-- the currency has been on the rise--

And the Swiss government is concerned.

TIME reports...

 

“The Swiss franc is one of the few rock-solid currencies left, but the Swiss economy isn’t very big. So when global investors start moving money into the Swiss franc in search of safety, the impact is enormous.”

 

Now- some market analysts predict Switzerland might retaliate financially. Here's the Wall Street Journal with word of the “might-happen” gutsy plan.

 

“Now, the concern here is that this could be massively ahead of the news flow, really, because we don’t have any concrete signs of something that’s definitely going to happen. Nonetheless, the Swiss franc has weakened substantially from its super strong levels just a few days ago to the point that people think it’s going to be pegged.”

 

Pegged-- meaning tied to the strength of the euro. An analyst for the Financial Times says- that’s too risky.

 

“But pegging, and thereby ceding monetary authority to another central bank seems unlikely. What if say, the euro came under pressure as a result of the eurozone debt crisis. Pull down the euro, and a pegged franc would have to follow.

 

SwissInfo reports-- one victim of the strengthening franc-- Swiss cheese. It’s now so expensive in the country-- the Swiss are looking for it outside the borders.

 

“Exports of Swiss cheese dropped 2.4 per cent in the first half of 2011, while imports of foreign varieties rose by more than six per cent.”

 

In 2011-- the franc is up about 10% on the euro, and almost 18% against the U.S. dollar.