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Swiss government says backs SNB efforts to weaken franc

Published 01/07/2015, 13:43
Updated 01/07/2015, 13:45
© Reuters. Newly minted Swiss Franc twenty cent coins are seen at Swissmint in Bern

ZURICH (Reuters) - The Swiss government supports efforts by the country's central bank's to weaken a "strongly overvalued" Swiss franc, which is likely to keep growth very weak in the quarters ahead but not trigger a sudden economic crisis, it said on Wednesday.

The Swiss National Bank took the unusual step on Monday to publicly confirm it had intervened to weaken the franc to rein in a currency whose strength amid Greece's debt crisis is hamstringing an export-reliant economy.

© Reuters. Newly minted Swiss Franc twenty cent coins are seen at Swissmint in Bern

The government said in a statement that stable domestic demand and an expected upturn in euro zone export markets should prevent a slide into crisis, but it was aware of significant risks to the economy, for instance from "Greece's uncertain future".

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