Official data recently released by the Swiss National Bank (SNB) show it sold 51.5 billion Swiss francs while acquiring US dollar and euro-denominated assets in a bid to weaken the franc over the first quarter of 2020. © Michael Müller | Dreamstime.comThe data followed comments by SNB President Thomas Jordan signalling that even larger interventions may be on the cards in the future. Switzerland’s long-running battle with its overvalued currency has drawn criticism from the US. In January 2020, the US Treasury added Switzerland to its “monitoring list”. Those on the list are trading partners whose currency practices merit close attention. It is no secret that the SNB has been actively trying to weaken the Swiss franc, which is widely considered overvalued. The SNB has long
Topics:
Investec considers the following as important: Business & Economy, Editor's Choice, Swiss Franc, Swiss National Bank
This could be interesting, too:
Investec writes Over half of Swiss families struggling to make ends meet
Investec writes New weight loss drugs likely to push up premiums
Investec writes Child welfare set to be cut to help pension funding
Investec writes Church tax – should Swiss companies be forced to pay?
Official data recently released by the Swiss National Bank (SNB) show it sold 51.5 billion Swiss francs while acquiring US dollar and euro-denominated assets in a bid to weaken the franc over the first quarter of 2020.
The data followed comments by SNB President Thomas Jordan signalling that even larger interventions may be on the cards in the future.
Switzerland’s long-running battle with its overvalued currency has drawn criticism from the US.
In January 2020, the US Treasury added Switzerland to its “monitoring list”. Those on the list are trading partners whose currency practices merit close attention. It is no secret that the SNB has been actively trying to weaken the Swiss franc, which is widely considered overvalued.
The SNB has long argued that controlling the franc’s appreciation is critical to the health of Switzerland’s large export-oriented manufacturing industry.
More on this:
SNB report (in French) – Take a 5 minute French test now
For more stories like this on Switzerland follow us on Facebook and Twitter.