In a comprehensive interview released yesterday, Swiss National Bank (SNB) President Martin Schlegel revealed some information indicating a higher tolerance for the performance of the Swiss franc. According to expert interpretations from an authoritative analysis platform, this seems to raise expectations that the euro may once again reach 0.9220 against the Swiss franc in the future.

Recently, the exchange rate of the euro against the Swiss franc is almost at 0.93, while the US dollar against the Swiss franc is below 0.80. In other words, the Swiss franc is currently in a relatively strong position, and Switzerland's inflation is only at a 0.2% annual growth rate. In the interview, two points are noteworthy.

First, the conditions for restoring negative interest rates are relatively high. Currently, the policy interest rate of the Swiss National Bank is zero, with the next meeting scheduled for September 25. Secondly, Schlegel mentioned: "Considering that the rise in commodity prices and corporate costs in other countries is faster, the actual appreciation of the Swiss franc is not as obvious as it seems at first glance." This statement is somewhat surprising, because even though the actual value of the Swiss franc has reached a peak in early 2024, the Swiss National Bank actually adopted a more accommodative policy at that time.

Overall, the Swiss National Bank seems more composed regarding the strength of the Swiss franc and holds a cautious attitude towards negative interest rates. In today's context where global politics and debt sustainability increasingly influence the foreign exchange market, it appears to encourage a strategic increase in holdings of the Swiss franc. This also makes it more likely for the euro to approach 0.9220 against the Swiss franc again this year.

Please note: The above information is for reference only. Past performance does not guarantee future results. What do you think about this? Do you have any other opinions? Feel free to leave a message and chat!