SNB is now more prepared to step into the foreign exchange market, according to the chairman
Swiss National Bank Signals Greater Willingness to Act in Currency Markets
Martin Schlegel, Chairman of the Swiss National Bank (SNB), announced on Tuesday that the central bank is now more prepared to intervene in foreign exchange markets to help curb the Swiss franc’s upward momentum.
According to Schlegel, the franc has become increasingly attractive as a safe-haven asset during periods of global uncertainty, especially following the recent intensification of conflict in the Middle East. This has led to mounting pressure for the currency to appreciate.
Schlegel emphasized that while the SNB’s primary tool remains its policy interest rate, there are circumstances where direct action in the foreign exchange market is necessary to maintain appropriate monetary conditions.
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