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8 Feb 2015
SNB will intervenve in FX market if necessary - Jordan
FXStreet (Bali) - The Chief of the Swiss National Bank, Thomas Jordan, crossed the wires over the weekend, after an interview with a Swiss radio station SRF, noting that the Central Bank is prepared to intervene in the foreign exchange market if needed, despite refusing to elaborate on any potential intervention conducted recently amid talks of a soft floor between 1.05/1.10 in EUR/CHF.
“We are observing the exchange rate situation as a whole, and if necessary we are active but as I said we do not speak about our transactions" Jordan said. On negative rates, Jordan said, reported by Reuters, that "the negative interest rates are having a strong impact to make the franc less attractive, and signaled the central bank has room to push rates lower." Jordan added that "there is certainly a limit for negative interest rates, but the question is where exactly that limit is. However, I believe at the current level of -0.75 percent, the limit certainly isn’t reached yet.”
“We are observing the exchange rate situation as a whole, and if necessary we are active but as I said we do not speak about our transactions" Jordan said. On negative rates, Jordan said, reported by Reuters, that "the negative interest rates are having a strong impact to make the franc less attractive, and signaled the central bank has room to push rates lower." Jordan added that "there is certainly a limit for negative interest rates, but the question is where exactly that limit is. However, I believe at the current level of -0.75 percent, the limit certainly isn’t reached yet.”