LEUTWILER WANTS FIRMER MARK AGAINST SFR
Fritz Leutwiler, chairman of
BBC AG Brown Boveri und Cie and a former Swiss National Bank
president, urged the National Bank to declare its intent of
achieving a rising rate for the mark against the Swiss franc.
    In a speech to shareholders, Leutwiler said, "A gradually
rising rate for the mark in relation to the franc would be
desirable from the standpoint of industrial exports and with
regard to sustaining Swiss industry."
    "Simply an appropriate declaration of intent by our bank of
issue (Swiss National Bank) could have a positive effect," he
said.
    Leutwiler, who served 10 years as head of the Swiss central
bank, said such a step would not contradict the National Bank's
target of monetary stability.
    "Bringing the franc close to the mark would, of course, have
to be done step by step under the watchful eye of monetary
policy," he told shareholders. "Realistically there is in fact no
persuasive reason why the German currency is quoted almost 20
pct lower than the Swiss."
    A National Bank spokesman said the relation of the mark and
Swiss franc was an example of stable currency parities over a
long period of time.
    The spokesman said exchange rates were made by the market,
not the central bank, and it would be impossible to influence
individual parities separately.
    Leutwiler said the Swiss National Bank could not support
the value of the dollar, even in conjunction with other central
banks, without putting monetary stability in jeopardy.
    "I would be the last to recommend that. The key to a
stronger dollar lies in the United States itself," Leutwiler
said.
 REUTER
