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Although Switzerland is most known for its financial sector, exports are a major component of the economy. In 2016 the country’s exports amounted to $279 billion, or just under 42% of the economy. Not bad for a landlocked country composed mostly of glacier-covered mountains.
Given the importance of imports and exports to Switzerland’s economy, it’s not surprising that the monthly release of Balance of Trade data gets a lot of attention among Swissy traders. Here are some things you might want to keep in mind for today’s release.
The central bank is interested
In most countries, the central bank sticks to a policy of maintaining price stability and largely doesn’t care about the relative exchange rate. Typically a higher or lower exchange rate is a political issue that is not under the purview of the central bank.
Switzerland, for several reasons, is the exception to this rule, and the Swiss National Bank (SNB) is quite outspoken when it comes to not only ...
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