SNB holds back on FX interventions amid US watch-list inclusion

Published 10/06/2025, 10:14
SNB holds back on FX interventions amid US watch-list inclusion

Investing.com -- The data from May shows that the SNB’s foreign exchange reserves did not fluctuate significantly, which might indicate a deliberate choice to avoid influencing the CHF’s value through market interventions. This decision aligns with a consistent pattern, despite the appreciation of the Swiss Franc (CHF).

The SNB’s restraint may be influenced by the inclusion of the CHF on the United States’ FX manipulation watch-list, suggesting a strategic reason behind the central bank’s lack of intervention, according to BofA FX strategists.

In the face of ongoing trade uncertainties, there is skepticism that the Zero Interest Rate Policy (ZIRP) will significantly weaken the CHF, despite a bearish outlook.

The latest FX reserves data corroborates the SNB’s inactivity in the currency markets, as reserves remained stable even after making valuation adjustments. This stability occurred despite CHF’s trade-weighted value having decreased from its highs, reducing the urgency for intervention compared to the heightened market volatility in April.

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