SNB’s Jordan Denies CHF Manipulation, but Then Pledges to Intervene if Conditions Require it

Posted Thursday, January 23, 2020 by
Skerdian Meta • 1 min read

The Swiss National Bank chairman, Thomas Jordan, was speaking on CNBC earlier today. He is trying to tell us/the US that they don’t mess with the Franc, after being included in a list of countries that manipulate their currency by the US, but we al know they do.

  • Doesn’t see a new minimum exchange rate at the moment
  • We don’t manipulate Swiss franc exchange rate
  • Franc exchange rate is important in relation to Swiss monetary conditions
  • Negative rates are a necessity
  • Negative rates have side effects, SNB trying to minimize those side effects
  • Balance of risks is tilted to the downside
  • SNB conducts independent monetary policy, does not follow the ECB
  • But needs to take international environment into account
  • SNB could still cut rates if needed
  • Franc is still highly valued
  • Must maintain negative rates, interventions
  • SNB can intervene as necessary

The headline remark can be interpreted as saying that they are not big fans of the Swiss franc appreciating. The other remarks so far are the usual platitudes offered by Jordan in every other SNB press conference in the past. Although, they remain committed to intervening if conditions arise.

But in this case, these are sensitive times for the franc after having had a period of strong performance last week – after the US put Switzerland on the currency manipulation watchlist.

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