Switzerland Today

Hello Swiss Abroad,

As expected at things can be in times of uncertainty, the Swiss National Bank raised interest rates today. It appears that inflation outweighed the problems in the banking sector, at least for the moment.

© Keystone / Martial Trezzini

In the News: Covid-19 vaccination, electric cars, and FINMA explains itself.

• The Swiss Army correctly dismissed four professional soldiers who refused the Covid-19 vaccination, the Federal Court has ruled. While the obligation to get vaccinated and dismissal in the event of refusal do indeed constitute an interference with personal freedom, this interference is justified in the present case, it said.
• Electric cars are cheaper than vehicles with combustion engines or hybrid drives over their entire operating life, according to a government study which compared more than 50 models in all price categories. The cost difference was the most for the luxury class of vehicles, where it amounted to more than CHF20,000 ($21,800).
• The Swiss Financial Market Supervisory Authority (FINMA) justified its controversial decision to write down the value of Credit Suisse’s AT1 bonds as part of the UBS takeover of Credit Suisse, saying the “contractual conditions” were met. This may not counter mounting criticism from bondholders, some of whom are preparing to sue the Swiss government over losses, according to the Financial Times.

© Keystone / Gaetan Bally

The central bank plays tug-of-war between inflation and the banks.

The Swiss National Bank (SNB) followed the US Federal Reserve this morning, raising the benchmark interest rate 0.5 percentage points to 1.5%. This puts the interest rates at a 15-year high.

The message from the SNB president was that inflation is still too bad to ignore. Specifically, he told the media this morning, “given the risk of inflation consolidating further, the rate was necessary despite the pressure on the banking sector”.

But there was no way SNB President Thomas Jordan could ignore the elephant in the room – the CHF100 billion in liquidity it had just handed to UBS to ease the takeover of Credit Suisse. Jordan was adamant though that the measures were the only way to avoid an even bigger crisis.

This isn’t free money, Jordan insisted. These measures are secured and bear interest. “They are not gifts”.

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How a Swiss influencer spreads Russian propaganda.

You may have never heard of Nathalie Yamb, but she has over 268,000 followers on Twitter. No one knows of course how many of them are real or fake accounts, but at this point this is the least of her worries. Today, Swiss public television, RTS, reportedExternal link that Yamb, also known as the “Lady of Sochi”, has been receiving death threats at her residence in canton Zug.

For more than ten years she has been campaigning for African independence and against all forms of colonialism. More recently, she’s been tweeting pro-Russia messages that have caught the eye of both US and French authorities. They allege that Yamb, who was born in La Chaux-de-Fonds, is being paid by groups such as the paramilitary group Wagner, which the US classifies as a criminal organisation, to spread pro-Russia propaganda in Africa.

Yamb denies the accusations, telling RTS: “I go wherever I am invited to talk about Africa. I don’t start looking at whether a country or an association is under sanctions.” She explained that she is financed by regular donations from her subscribers and can get paid handsomely if she partners with a brand. While she doesn’t know where her funding comes from, she would take money from anyone – “I have no qualms,” she added.

This isn’t the end of the story, but for Yamb the media attention is definitely boosting her influence, well at least her influencer power. She has gained several thousand subscribers in a few weeks.