Switzerland’s SNB Still Ready for Forex Intervention as U.S. Drops Manipulator Tag
John Revill, 16 April 2021
ZURICH (Reuters) – The Swiss National Bank (SNB) said on Friday it remained ready to intervene in foreign exchange markets, after the U.S. Treasury Department dropped its currency manipulator label for the country even though it met criteria for the designation.
The Swiss central bank noted the U.S. Treasury Department did not use the term currency manipulator in a new report, adding its foreign exchange purchases were not intended to alter Swiss balance of payments or unfairly help the Swiss economy.
“The SNB’s position is therefore clear: Switzerland does not engage in any currency manipulation,” the SNB said. Continue reading “Article: Switzerland’s SNB Still Ready for Forex Intervention as U.S. Drops Manipulator Tag”
Flourishing Financially: Corporate Finance In Switzerland
RHEA WESSEL, 02 April 2021
Switzerland is reasserting its reputation as a stable and resilient economy in times of turbulence. While markets elsewhere are concerned about overleveraged companies and ballooning public debt, credit and capital markets in Switzerland appear to be quietly ticking along with the reliability of a proverbial Swiss watch.
It is not for nothing that the country and its currency are considered among the safest of havens. After the Alpine republic and its internationally oriented companies weathered the 2008 global financial crisis, the Swiss National Bank (SNB) tackled the relentless appreciation of the Swiss franc by massively intervening in the currency market, opening Switzerland to accusations of currency manipulation.
But it worked. The SNB’s efforts stemmed the franc’s rise, protecting Swiss companies’ competitiveness and creating favorable funding conditions in the country. Corporate bond spreads hardly budged throughout the financial crisis, a stark contrast to the adverse environment CFOs faced in the eurozone and the US. Continue reading “Article: Flourishing Financially: Corporate Finance In Switzerland”
UPDATE 3-Less vocal Swiss central bank still set for loose policy
John Revill, Silke Koltrowitz, 25 March 2021
ZURICH, March 25 (Reuters) – The Swiss National Bank toned down its verbal commitment to foreign currency interventions and raised its inflation outlook on Thursday, but chairman Thomas Jordan said this did not mean the bank would quit its ultra-expansive policy.
The central bank kept its benchmark interest rate locked at minus 0.75% as forecast by all economists in a Reuters poll, reiterating its commitment to a policy in place since 2015, spearheaded by the world’s deepest negative rate. Continue reading “Article: UPDATE 3-Less vocal Swiss central bank still set for loose policy”