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Swiss Franc Revaluation: the Pizza Dilemma
An interesting side effect on the recent swings in the Swiss currency was the pizza dilemma. When Switzerland decided to remove the cap on the franc versus the Euro the Swiss franc rose about forty percent and then slowly fell to a range about twenty percent above the previous value. This has been an issue for those trading the Swiss franc but also for pizza businesses in Switzerland who were being undercut in price by deliveries from German. According to the Independent the currency situation caused the Swiss to block pizza deliveries from Germany.
Switzerland’s decision to lift the cap on the franc’s value against the euro has had unexpected consequences – in the form of intercepted pizza deliveries.
Swiss people looking for a bargain have been dialing up restaurants across the border in Germany, but now the authorities have had enough, according to the Wall Street Journal.
Uli Burchardt, the mayor of Constance, which borders Switzerland to the northeast, told the publication that German vans have been stopped by Swiss customs officials after it was discovered they had been delivering up to 60 pizzas at a time.
The move by the Swiss bank to let the franc float was not a popular one with many Swiss businesses who are finding themselves priced out of many markets. This may be part of why the franc has fallen back toward a more acceptable trading range.