Swiss currency swap talks with Russia, China and Russia could be held at the end of the year after Swiss President Jens Weidmann’s meeting with Vladimir Putin on Saturday.
The talks could see Switzerland exchange two francs for a euro in the next couple of months, Swiss media report.
Swiss currency markets are already seeing a surge in interest in Swiss bonds, with the franc now trading at around 16.50 francs per US dollar, while the euro has dropped below 19.50 per US Dollar.
This is expected to increase the Swiss franc’s appreciation in the coming months, as a strong recovery in global demand and demand from China and the US will continue to drive higher prices.
Weidman’s meeting will also see the signing of a deal to set up a new $300 million fund to help support Switzerland’s financial sector during the economic crisis.
Swiss President Emmanuel Macron has also said he would meet with Putin to discuss bilateral trade and investment ties, Reuters reports.
A separate source from the Swiss finance ministry confirmed the deal.
“We are on the brink of a trade and finance agreement that would provide a boost to the Swiss economy,” the source said.
“But we have to make sure that the deals we are signing are also compatible with the law and the values of the country.”
The Swiss economy has been suffering from a severe downturn in the past three years, following the global financial crisis, which caused major bank closures and the global recession.
Weilmann will meet with the Chinese president Xi Jinping in China in the middle of the month.
The two leaders will also be meeting in Russia later this month to discuss economic issues, Reuters adds.
This could mean a new deal could be signed in the near future.
“It is still a bit early to be sure,” a Swiss banker told Reuters.
“I am afraid that it will take months before we know what kind of a pact we can reach, but it is still possible.”