I receive a certain national newspaper at home that is named after a street and focuses heavily on finance. I like getting a newspaper at home and this is the only national paper that I can get delivered on the same day. Others can be delivered via USPS but I have found that there are too many delivery delays to make them a realistic option.
Last week, the Swiss scrapped a cap of the franc against the euro. Previously, the franc had been capped at around 1.20 francs per euro. With the cap removed, the euro plummeted by as much as 30% against the franc. There were big, bold headlines in the newspaper that I receive. Headlines like, “Swiss Move Roils Global Markets (wsj.com)”, “Luxury Watchmakers Bemoan Swiss Move” (wsj.com) and “Swiss Central Bank Credibility Takes Hit With Franc Move (wsj.com).” Obviously, headlines like that warranted a conversation and my wife and I talked about it briefly (probably about as long as we talked about the Oscar nominations) but didn’t think much of it. Why would we? We don’t live in Europe, we’re not planning on going to Switzerland anytime soon and I’m not looking at buying a luxury Swiss made watch.
Then, on Monday I checked my email and received a notice from my registrar that all .li and .ch domains would increase in price:
“Following the deregulation of the Swiss Franc (CHF) by the Swiss Central Bank, the exchange rate with other currencies has experienced a major and highly-criticized change (+20%!).
This decision is not without consequences for companies purchasing products from Switzerland. In our case, this effects the extensions operated by the Swiss registry SWITCH which manages the .CH and .LI extensions.
This is why, in accordance with our contract, we are forced to apply an increase of €1.50 excl. VAT per year for .CH domains, as well as an increase of €2 excl. VAT per year for .LI domains in all price rates.
This increase takes effect immediately.
We will be monitoring the exchange rate over the next few weeks, and if it turns out that the currency returns to a more “normal” value, we will adapt our price accordingly.
Additionally, please note that for the first quarter of the year, we are going to be working on the integration of our catalogue into Swiss Francs, so that our Swiss customers are not penalized.”
If you check the “Share” section above this article, you will notice that I have a short domain for Firebrand Media, fire.li. So, I’ll pay a couple more dollars per year for that domain.
I only have one domain that is impacted and the amount is not significant but I did think it was interesting how your business can be unexpectedly impacted by something like the monetary policy of a European nation. Business is fun!
Photo Credit: https://flic.kr/p/akJFVB