Yesterday’s figures on the interventions in the currency market of the Swiss National Bank (SNB), which amounted to around 100 million in the fourth quarter, confirmed once again that the SNB is currently intervening in the currency market in a quite cautious way, says Commerzbank’s currency analyst Michael Pfister.
SNB probably feels comfortable with Franco at this time
“In total, the SNB bought around 1.2 billion CHF in foreign currency last year to weaken the Franco – it is not a particularly large sum compared to the 22.6 billion CHF in currency sales only in the fourth quarter of 2023, when the SNB still tried to strengthen the Franco.”
“But the new figures will not have surprised the market participants. Although the SNB has emphasized its willingness to intervene more overwhelming in the currency market if necessary, it has also repeatedly warned about the risks of an excessively large financial balance.”
“And with Donald Trump in the White House and the risk of being beaten with tariffs to intervene to weaken the Franco, the SNB will probably remain cautious in the coming months. However, with the EUR/CHF now quoting higher than at the end of February due to a stronger euro, the SNB probably feels more comfortable with the Franco at this time than last year.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
