Swiss National Bank faces pressure over franc strength

The Swiss National Bank (SNB) is under pressure to address strengthening the franc, which is threatening the fragile recovery of Swiss exports, according to Swissmem, the country’s largest manufacturing lobby.

The franc has risen by about 4 per cent since mid-July, trading at 0.939 francs per euro, due to global market shifts. Swissmem urged the SNB to act swiftly using its available tools to manage further currency appreciation.

While the central bank has prioritised interest rate cuts this year, it has not ruled out currency interventions. The Swiss economy, which has struggled with weak export demand, may see further rate cuts next month as the real exchange rate has rebounded to pre-cut levels.

Attribution: Bloomberg