Swiss National Bank intervenes with 1.4 billion francs of FX to curb franc surge in Q2
The Swiss National Bank bought foreign currencies worth 1.4 billion francs in the second quarter to temper the franc’s rise against the euro and dollar.
During Q2, the Swiss National Bank purchased foreign currency amounting to 1.4 billion francs, aiming to curb the franc’s appreciation versus the euro and the dollar, which has been hurting Swiss exporters. The intervention follows a sharp franc rally after the Middle-East conflict began on 28 February, when the euro-franc rate hit a record near 0.89. By comparison, the bank bought 3.94 billion francs of foreign currency in the first quarter.
Why it matters
A stronger franc hurts Swiss exporters, so the central bank’s FX purchases aim to protect the country’s export-oriented economy.
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