Thomas Jordan, the Chairman of the Swiss National Bank (SNB), recently discussed the Swiss franc and the bank’s potential intervention in the foreign exchange market in an interview with Le Temps. Jordan emphasized the impact of political uncertainties in Europe and globally on the Swiss franc, stating that the SNB is prepared to intervene in the FX market if necessary. However, he made it clear that intervention would only occur if deemed necessary.
In addition to discussing potential intervention in the FX market, Jordan also shared his perspective on inflation in Switzerland. Following the release of data showing Switzerland’s June Consumer Price Index (CPI) at +1.3% compared to the expected +1.4% year-on-year, Jordan stated that inflation is expected to converge around 1% in the medium term at constant exchange rates. He noted that the strength of the franc plays a role in reducing the risk of inflation, and emphasized the importance of ongoing monitoring of the situation.
It is worth mentioning that Thomas Jordan will be concluding his tenure at the Swiss National Bank in September. During his time as Chairman, Jordan has overseen the bank’s policies and decisions, including its approach to managing the Swiss franc in the foreign exchange market.
As Switzerland continues to navigate economic challenges and uncertainties, the role of the SNB in maintaining stability and addressing fluctuations in the currency market remains crucial. The bank’s readiness to intervene if necessary demonstrates its commitment to supporting the Swiss economy and ensuring financial stability.
In conclusion, Thomas Jordan’s remarks highlight the SNB’s proactive stance on managing the Swiss franc and addressing inflation concerns. As he prepares to step down from his position, the incoming leadership will inherit the responsibility of upholding the bank’s mandate and navigating the complex economic landscape. The Swiss National Bank’s role in shaping monetary policy and safeguarding the country’s financial interests will continue to be closely watched by market observers and policymakers alike.