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DThe Swiss National Bank (BNS) plans to take more currency interventions to deal with too strong a Swiss franc. However, central bank president Thomas Jordan does not see a further rate cut at this time as the main instrument to combat the currency’s high valuation, which is detrimental to the country’s export economy. “If necessary, we still have room for maneuver, but now we are focusing on currency intervention to limit pressure on the Swiss franc,” Jordan said in an interview with the Geneve Tribune newspaper available on Saturday night.
The biggest recession brought on by the coronavirus crisis since the Great Depression of the 1930s has led to “enormous upward pressure” on the Swiss currency, which is considered a safe haven for many investors, Jordan said in a previously published interview. with the “Sonntagszeitung”. The franc won against the euro, but the multi-million dollar interventions would have had a big impact. “Without the National Bank’s monetary policy, we would see a completely different frank exchange rate in the current situation,” he said.
It sees no alternative to the continuation of the current ultra-loose monetary policy. “It really is not the case that we are happy with the negative interest rate,” BNS President Thomas Jordan said in an interview published in advance by the “Sonntagszeitung”. “We will lift it as soon as circumstances allow.” But the negative interest rate of minus 0.75 percent is currently necessary to avoid further damage to the country.
