Switzerland hints at possible intervention in the exchange rate

On March 19, the Swiss National Bank (the Swiss central bank) stated that its willingness to intervene in the foreign exchange market is increasing. “In light of the Middle East conflict, the Swiss central bank’s willingness to intervene in the foreign exchange market has strengthened… The Swiss National Bank’s move aims to curb the rapid and excessive appreciation of the Swiss franc, as this would threaten Switzerland’s price stability,” said Swiss National Bank President Martin Schlegel. He stated that the central bank committee hopes to prevent the Swiss franc from appreciating excessively or too quickly to ensure Switzerland’s price stability. “We assess monetary policy quarterly and decide how to use tools—including interest rates and foreign exchange interventions… At this meeting, we concluded that increasing the willingness to intervene in the foreign exchange market is necessary for current monetary policy.”