FRANKFURT (MNI) – The Swiss National Bank will continue to enforce
the minimum exchange rate with the utmost determination, SNB Chairman
Thomas Jordan said Monday in a speech text prepared for delivery at the
NZZ Capital Markets Forum in Zurich.
“In the current situation, a further appreciation of the Swiss
franc would constitute a very substantial threat to the Swiss economy,
and would carry with it the risk of deflationary developments. With this
in mind, we will continue to enforce the minimum exchange rate with the
utmost determination, in line with our mandate,” Jordan said.
Jordan said that the “economic uncertainty in the euro area, in
particular, is of great concern to Switzerland and the SNB.” While the
Swiss central bank cannot influence developments in the euro area, it
can “act in a resolute and timely manner to dampen the negative
implications for our country,” Jordan stressed.
The head of the SNB underlined the importance of a stable financial
system and banking sector particularly for Switzerland and welcomed the
recent reform push aimed at ensuring greater stability.
In this context, Jordan pointed to the new instrument of
countercyclical capital buffers and said that the SNB’s decision not to
propose activating them thus far should not be interpreted as easing
concern over emerging imbalances especially for the real estate market.
“This is far from an all-clear for the real estate market. I want
to underline again that the risk of a further build-up of imbalances
followed by a significant price correction is still present. The
countercyclical capital buffer is a key element in the package of
measures recently approved by the Federal Council,” Jordan said.
–Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@mni-news.com
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