SNB President Schlegel Says No Exchange Rate Target for Franc

Swiss National Bank President Martin Schlegel said the central bank does not target a specific exchange rate for the franc, repeating a longstanding policy stance that emphasizes flexibility in currency intervention.

For interest rate and central bank policy traders, the SNB's lack of an explicit exchange rate target means the franc's value will continue to be driven by rate differentials and safe-haven flows. The SNB has historically intervened to weaken the franc when it appreciates too sharply, but without a formal cap, markets must gauge intervention risk from verbal cues and balance sheet data. The SNB's policy rate currently stands at 0.5%, and any shift in intervention rhetoric could signal future rate moves. NowPrice's real-time rates quotes show the latest levels for USD/CHF and EUR/CHF, allowing traders to monitor franc volatility directly.

Looking ahead, traders will watch Schlegel's future speeches and SNB quarterly data for signs of actual intervention. Key levels for USD/CHF and EUR/CHF will be closely monitored, especially if the franc strengthens amid global risk aversion. The next SNB monetary policy assessment is scheduled for September, where any change in the inflation outlook could alter the intervention calculus.