The Swiss National Bank (SNB) reported on Thursday the sale of currencies amounting to 22.7 billion francs (23.2 billion euros) in the fourth quarter of 2023, a reduction from the 37.6 billion francs (38.5 billion euros) released between July and September.

This happens amid lower inflationary pressure in the central European country.

The sale of currencies from the national reserve, the third-largest in the world after those of China and Japan, is the lowest on a quarterly basis since the third quarter of 2022, after two years of implementing this strategy to increase the value of the Swiss franc against other foreign currencies and thereby combat inflation.

These sales have contributed to keeping inflation in Switzerland below the 2% limit set by authorities for the past nine months.

Also in a context of lower inflationary pressure, the SNB unexpectedly announced a rate hike last week, the first in the country in nine years.

The Vice President of the Swiss National Bank (SNB), Martin Schlegel, stated late on Wednesday that he reiterates the long-standing stance of the SNB regarding the Swiss Franc (CHF). Schlegel declared that the central bank does not have any specific target for the exchange rate.

Last week, the Swiss National Bank (SNB) cut its key interest rate by 25 basis points to 1.50%, a surprising move that makes it the first major central bank to reverse its tightening of monetary policy introduced to combat inflation.

In the first decision made since its president, Thomas Jordan, announced his resignation in September, the central bank also reduced the sight deposit rate to 1.50%.

The move caught markets off guard and led to a sharp decline in the Swiss franc against the dollar and an eight-month low against the euro.