Switzerland's top central banker praised the euro for bringing stability to currency markets Friday but ruled out any closer linkage between the Swiss franc and the European currency.
Despite growing ties between the fiercely independent Alpine country and the European Union, Swiss National Bank chairman Jean-Pierre Roth underlined that the Swiss would suffer if they had to raise their low interest rates to higher euro-zone levels.
"While the European integration of Switzerland proceeds, I see no reason, now, for artificially speeding up monetary adjustments by linking the franc to the euro," Roth said.
"In monetary affairs we remain indeed an island in Euroland."
But in a speech to the Bank of Greece in Athens, he gave a glowing assessment of the European currency and praised it for bringing a dose of Swiss-style stability to international currency markets.
"Not only does the common currency contribute to the integration of the European market, but the appearance of a counterweight to the US dollar has helped to stabilise the international monetary order," Roth said.
"Exchange rates around the world can thus evolve closer to their economic fundamentals and the impact of exchange rate fluctuations on capital flows and foreign trade are dampened," he added in a copy of the speech released here.
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