SNB Vice President Schlegel says the Bank has no target for the franc (CHF) exchange rate

Schlegel is favoured to take the top spot at the bank when current Chair Jordan leaves in September after a decade in the job.

He spoke at an event in in St. Gallen, Switzerland:

• Swiss National Bank has no target for the franc exchange rate
• “The National Bank monitors the exchange rate closely and intervenes in the foreign-exchange market as necessary,”

Schlegel basically repeating what the Bank has previously said regarding the exchange rate.

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The SNB dropped a surprise interest rate cut last week. Swiss National Bank President Jordan said at that time that he sees “very little risk” that price gains will rebound past the 2% upper end of the Bank’s target range.

As for the franc, the SNB had allowed it to rise, which helped combat imported rising costs as inflation shot up. But that policy had costs, most notably when the Swissy hit a record high against the euro at the end of 2023. Its fallen back since, more so after last week’s rate cut.

This article was written by Eamonn Sheridan at www.forexlive.com.