SNB study tallies cost of intervention to curb franc gains
© Reuters. FILE PHOTO: A view of the headquarters of the Swiss National Bank , before a press conference in Zurich, Switzerland, March 21, 2024. REUTERS/Denis Balibouse/File PhotoZURICH - The Swiss National Bank has to spend billions of dollars on foreign exchange to keep the Swiss franc from appreciating, according to a new working paper published by the central bank.
"The effect is stronger the longer the central bank can commit to keep its policy rate constant in response to the inflationary effect of the interventions," notes the paper authored by Tobias Cwik and Christoph Winter. However, as inflationary pressure built after the COVID-19 pandemic, in 2022 the SNB began selling forex to strengthen the franc in a bid to lessen the impact of imported inflation.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Swiss Franc plunges after SNB cuts interest ratesThe Swiss Franc (CHF) is trading weaker by about one percent in its most heavily traded pairs on Thursday after the Swiss National Bank (SNB) decided to cut interest rates at their March meeting.
Read more »
Swiss Franc weakens ahead of SNB meetingThe Swiss Franc (CHF) is trending lower on Wednesday in its most heavily traded pairs ahead of the week’s key event for the currency, the Swiss National Bank (SNB) policy meeting on Thursday.
Read more »
Swiss Franc steady, SNB meeting on the horizonThe Swiss Franc (CHF) edges slightly higher at the start of the week, up a few hundredths of a percent in its most heavily traded pairs.
Read more »
USD/CHF reclaims 0.9000 as SNB’s surprise rate cut keeps Swiss Franc on backfootThe USD/CHF pair recaptures the psychological resistance of 0.9000 in the European session.
Read more »
SNB’s Schlegel: The Bank has no target for the Swiss Franc exchange rateThe Swiss National Bank (SNB) Vice President Martin Schlegel said late Wednesday, repeating the SNB’s longstanding position as regards the Swiss Franc (CHF).
Read more »
USD/CHF attracts some sellers below 0.8550, investors await Fed, SNB rate decisionThe USD/CHF pair loses traction amid the consolidation of the US Dollar (USD) during the early European session on Monday.
Read more »