SNB Chief: EUR/CHF peg still ‘absolutely necessary’

Switzerland’s exchange rate peg against the euro remains “absolutely necessary”, despite waning deflation risks and the upturn in the single currency, the head of the Swiss National Bank (SNB) told CNBC.

On Thursday, the SNB opted to continue its foreign currency purchases aimed at maintaining a minimum exchange rate of 1.20 Swiss francs to the euro. The SNB also held its three-month Libor target range at 0.00-0.25 percent.

“The minimum exchange rate remains absolutely necessary in order to ensure adequate monetary conditions in Switzerland. It is insurance against sudden shocks in the exchange rate so that we can work against deflation in Switzerland,” said SNB Chairman Thomas Jordan.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.