Swiss National Bank cancels third quarter foreign exchange purchases

A general view of the Swiss National Bank (SNB) building in Zurich, Switzerland, December 16, 2021. REUTERS / Arnd Wiegmann

Register now for FREE and unlimited access to


ZURICH, Dec.31 (Reuters) – The Swiss National Bank spent 2.79 billion Swiss francs ($ 3.05 billion) in foreign currency during the third quarter, data showed on Friday, representing a decrease of its interventions despite the continued rise in the value of the safe haven. .

This figure is lower than the 5.44 billion francs spent by the SNB between April and June and also lower than the 10.97 billion francs spent in the third quarter of 2020, according to central bank data.

During the three months of July to September, the franc appreciated 1.6% against the euro, and has since been pushed even higher after attracting investors looking for safe-haven assets.

Register now for FREE and unlimited access to


Currency interventions, along with negative interest rates, are cornerstones of the SNB’s battle to stem the strengthening of the Swiss franc. The bank recently reiterated its commitment to the interventions. Read more

A stronger Swiss franc threatens to undo the SNB’s goal of achieving price stability in Switzerland by lowering the price of imports, while it hurts the country’s economy by raising the price of Swiss exports .

But the apparent low level of currency purchases has prompted economists to speculate that the SNB has become more reluctant to contain the franc as it climbs in value. Read more

Analysts also said the SNB seems more comfortable with the recent appreciation of the franc, as the fall in Swiss inflation relative to inflation in the euro area reduces the real effect of nominal appreciation by the currency.

“The low level of foreign exchange intervention in the third quarter indicates that the SNB was little concerned about the development of exchange rates in the third quarter,” said Karsten Junius, economist at J.Safra Sarasin.

“In the fourth quarter, we expect a higher level of currency intervention. During this period, the CHF has appreciated 5% against the euro alone – which is a speed of adjustment which is clearly too quick for the comfort of Swiss exporters and therefore also for the SNB. “

($ 1 = 0.9145 Swiss francs)

Register now for FREE and unlimited access to


Reporting by John Revill; Editing by Alison Williams and Gareth Jones

Our standards: Thomson Reuters Trust Principles.

Comments are closed.