Home Forex News Swiss franc not highly valued – SNB’s Jordan

Swiss franc not highly valued – SNB’s Jordan

by

Swiss franc not highly valued – SNB’s Jordan By Reuters

Breaking News

‘;

Economy Sep 30, 2022 11:40PM ET

(C) Reuters. FILE PHOTO: 1,000-Swiss-franc banknotes lie in a box at a Swiss bank in Zurich, April 9, 2019. REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) – The Swiss franc is not highly valued despite its nominal rise, Swiss National Bank Chairman Thomas Jordan told a Swiss newspaper, adding the central bank intended to be deliberately vague about how it sees the safe-haven currency.

“In the past, we referred to the Swiss franc as being highly valued or even significantly overvalued in order to give a signal regarding the need for intervention. At the moment, the Swiss franc’s valuation is no longer clearly high, and we do not want to comment on every move,” he told the Neue Zuercher Zeitung paper in an interview released on Saturday.

His comments come as the SNB focuses on using franc strength to fight inflation after years of currency intervention and negative interest rates to keep a lid on the franc for fear it would cripple the export-dependent economy.

Jordan said he did not see a period of competitive currency appreciation as other central banks adopt the same strategy.

“The yen is at a historic low, the pound sterling has lost significant value and the euro is comparatively weak. I don’t see signs of competitive appreciation. The two strong currencies, the U.S. dollar and the Swiss franc, are considered safe havens,” he said.

If the franc appreciates so strongly that the monetary policy environment becomes too restrictive, the SNB will continue to intervene, he said. “But we also do not want to exacerbate the inflation problem with an excessively weak franc. We deliberately do not want to be more specific.”

Jordan said the SNB’s balance sheet was a policy instrument it could use alongside its policy rate to ensure price stability.

“We are not going to reduce our balance sheet simply because of the sheer size, but if it helps us ensure price stability, of course we will,” he said.

Winding down the SNB’s balance sheet “will probably take considerable time”, he said.

“If we were to sell large amounts of foreign currency holdings immediately, this would create too much appreciation pressure. The most favorable time to sell is when we have inflationary pressure, interest rates are clearly positive and the franc is showing a weakening trend.”

Swiss franc not highly valued – SNB’s Jordan

Analysis-Under water: how the Bank of England threw markets a lifelineBy Reuters – Oct 02, 2022

By Carolyn Cohn, Tommy Wilkes and Carolina Mandl LONDON/NEW YORK (Reuters) – Calls to the Bank of England saying some British pension funds were struggling to meet margin calls…

Nigeria would consider China’s C919 plane for new airlineBy Reuters – Oct 01, 2022

MONTREAL (Reuters) – Nigeria would consider buying China’s newly-certified C919 passenger jet as it grows the country’s fledgling carrier Nigeria Air to 30 planes by around 2025,…

Thai central bank says has acted to curb baht volatilityBy Reuters – Oct 01, 2022

BANGKOK (Reuters) -Thailand’s central bank has been in the foreign exchange market to reduce currency volatility, the central bank said on Saturday, as the Thai baht currency…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News