The Swiss franc has gained about 4 percent against the U.S. dollar since late February, the best performance among G10 currencies.
Traders in recent weeks have started giving optimistic forecasts about the franc, which has not been seen since September 2021, Bloomberg noted. These changes are due to a projected divergence in monetary policy between the Swiss National Bank and central banks in Europe and China.
The sharp slowdown in economic growth in the euro zone and China strengthens analysts’ opinions that central banks will move to soften monetary policy. Experts also expect similar moves from the Federal Reserve in the not-too-distant future, although mixed economic data do not rule out the possibility of another prime rate hike before then.
“We expect the Swiss franc to rise in line with a multi-year trend,” said Thomas Fluri, head of currency research at UBS Wealth Management. He expects the currency to strengthen in the medium to long term because of the low price pressure in Switzerland and the fact that the country’s central bank is “convinced of the need to fight even this small inflation.” Moreover, “there are also many opportunities to repatriate money that was left outside the country during the period of negative interest rates,” the expert believes.
The franc also remains a safe haven for nervous investors amid worsening geopolitical tensions between the U.S. and China, the agency noted.
The Swiss national currency, like gold, shows good results in the periods when central banks’ monetary policy is stimulating. The franc appreciated 10% during the 2001-2002 cycle of rate cuts by the Fed and the ECB. At the beginning of the 2007-2008 financial crisis it gained 13%. When the Fed lowered rates in 2019-2020, the franc appreciated about 7%.
Long-term estimates of the franc “don’t look overstated at all” after accounting for differences in inflation with other countries, JPMorgan Chase analysts said. They predict a gradual strengthening of its exchange rate by March 2024 by more than 5% against the dollar and more than 4% against the euro.
After fears regarding the US debt ceiling are removed, the franc may weaken against the US national currency by 1-2%, experts say. However, they think this is only temporary negative factor that “is not a problem for our “bullish” strategic view of the franc.
The dollar is trading at 0.9067 francs and the euro at 0.9697 francs on Tuesday.
PrivatBank, the largest on the market, confirmed disruptions and delays in the work of the bank’s services, in particular Privat24, ATM networks and card payments through merchant terminals.
“All IT specialists involved are working to restore stable work as soon as possible,” the financial institution said in a telegram message.
The bank thanked customers for their understanding and patience.
As stated by the National Bank in a report for 2022, the leaders in Ukraine on the issue of payment cards are state-owned PrivatBank and Oschadbank – respectively 43.8% and 15.4%, as well as Universal Bank (mono) – 13.2%.
The largest number of payment terminals on the market also belongs to PrivatBank – 60.4%, Oschadbank – 19.6% and Raiffeisen Bank – 7.6%.
Animal protection organizations of Ukraine urge not to leave animals behind during evacuation because of the explosion of the Kakhovskaya HPP and advise where to go and how to help.
The destruction of the Kakhovka dam caused flooding of up to 80 settlements in the South of Ukraine. People are urgently evacuated. Animal protection organizations sound the alarm because, during the evacuation, people can forget or leave their pets behind. In addition, many homeless animals and foster shelters remain in the risk zone.
The Save Pets of Ukraine social initiative from Kormotech has already provided 1,500 kg of cat and dog food, treats, 37 cages, seven carriers, collars, leashes, and 125 evacuation backpacks for these animals. Public organizations and volunteers are already going to the Kherson region to save four-legged animals.
Where to turn for help
The Save Pets of Ukraine initiative has collected the contacts of organizations that accept applications from residents of the Kherson Region regarding the evacuation of animals:
Charitable Fund “Ukraine. United in diversity”
NGO “Petro and Mazepa” +380932230214
BO “12 guards” +380638631512
The All-Ukrainian Center for Assistance to Homeless Animals Patron Pets Center in Kyiv is ready to accept animals evacuated from the Kherson region.
How to help
Those wishing to support animals affected by flooding in the Kherson region can join the initiatives of animal protection organizations:
The Save Pets of Ukraine initiative accepts applications from organizations traveling to the Kherson region for evacuation to provide them with everything they need and also collects inquiries about providing shelter to animals evacuated from the Kherson region in shelters of Zaporizhzhia, Dnipro, and Odesa regions. The organization publishes current news on its social networks and calls on everyone who cares to help save animals from flooded areas:
https://www.facebook.com/savepetsofua
Almost 55 thousand hectares of forests may be flooded with water in the Kherson region as a result of the explosion of the Kakhovka hydropower plant by Russian troops, of which 47 thousand hectares are occupied territories, said the director of the state enterprise “Forests of Ukraine” Yuri Bolokhovets.
“It is quite difficult to assess the damage caused to forestry now, because we do not have access to the occupied territories. However, it is possible to predict the situation,” he wrote on Facebook on Tuesday.
Bolokhovets noted that the left bank of the Dnieper in the Kherson region is planted with pine forests. The fertile layer of forests and young plantings could have already been literally swept away by the flow of water.
Pine grows well where it is dry, the expert explains. Stagnant water in waterlogged places provokes the development of root rot and changes the acidity of the soil. It can kill trees if the water stagnates for up to 20 days, as it is predicted. Trees under 10 years of age are particularly endangered, the report says.
Of particular concern to the head of the state enterprise “Forests of Ukraine” are wild animals, which found themselves in flooded areas. “If there is still hope for the preservation of plants in the forest, the animals are actually doomed. Perhaps some may be able to cling to an island of land, but the vast majority will simply be carried by the current into the open sea. These are deer, roe deer, wild boar. Lizards, snakes, hares, hedgehogs have no chance”, Bolokhovets notes.
He also pointed out that the threat of flooding is close to Kynburne Spit, most of which is below sea level. According to him, the isthmus at the end of the bay outside the Dnieper delta is likely to be almost completely flooded, and this could happen in 50 hours after the breach of the dam.
“The regional landscape park “Kinburn Spit”, which has been suffering from fires as a result of shelling for more than a year, may now be partially under water,” said Bolokhovets.
It is noted that due to the destruction of the Kakhovskaya hydroelectric power station into the Dnieper about 150 tons of machine grease, the precipitation of which on plants leads to irreversible consequences in the process of photosynthesis.
“Such actions of a terrorist country are ecocide, for which they will have to answer”, – summarized the head of the state enterprise “Forests of Ukraine”.
The peak of water spill from the Kakhovka reservoir is expected by the morning of June 7, reported PJSC “Ukrhydroenergo” with reference to the general director of the company Igor Sirota on Tuesday.
“Further, there will be a stabilization of the water level. In 4-5 days the water will begin to recede,” said the head of Ukrhydroenergo.
On Tuesday morning, the Ukrhydrometeocenter warned that on the Dnieper River below the town of Novaya Kakhovka, as a result of the explosion of the Kakhovka hydropower plant, intense rise in water levels with flooding of riverbed areas and lowered parts in Kherson, in Kherson, Berislavsk, Skadovsky districts of Kherson region is expected. III level of danger – red.
As reported, at 02:50 on June 6, Russian troops carried out an internal explosion of structures at the occupied Kakhovska HPP, which led to the flooding of a number of settlements in the Kherson region. As of 11:00 a.m., 16 gates of the plant, the HPP building and the earth dam insert between the HPP building and the sluice and admin building were destroyed.
At the same time, the explosion of the HPP did not directly affect the situation in the Ukrainian energy system. There are no threats to the stability of power supply. The generated electricity is sufficient to cover the needs of consumers.
The destruction of the hydropower plant is considered a violation of the Geneva Convention.
Source: Interfax-Ukraine
Number of unemployed people registered in public employment service as of 01.05.2023 (thush people)
Source: Open4Business.com.ua and experts.news
