Forex euro - Swiss franc intervention comments from the SNB, denying 1.05 is the new informal limit.
From Swiss National Bank (SNB) Governing Board member Andrea Maechler in an interview with Swiss newspaper Neue Zuercher Zeitung.
In brief:
- The SNB is intervening on the foreign exchange market because in this crisis the Swiss franc has once again become a safe haven and the appreciation pressure has increased significantly.
- the strengthening would be much more pronounced if we had not been prepared to intervene more. At present, all safe haven currencies are under pressure to appreciate, alongside the franc, the dollar and the yen.
- our interventions are currently necessary to keep further damage away from the Swiss economy
On the 1.05 level in euro-franc, Maechler was asked "Is the SNB currently establishing a new informal minimum rate?"
- No. We look at the entire currency situation.Of course, the euro exchange rate is important due to the close trade relationship with Europe.We also take the other currencies into account.
Maechler also spoke on crypto, equity and bond market buying, and more. Interview is here (link, may be gated)
