Investing.com -- The Swiss National Bank does not pursue a specific exchange rate target, President Martin Schlegel stated on Tuesday, while reiterating the bank’s increased readiness to intervene in foreign exchange markets.
Speaking to lawmakers in Bern, Schlegel outlined the SNB’s approach to maintaining appropriate monetary conditions through its policy rate and additional measures when needed, including foreign exchange market intervention.
The central bank chief noted that real appreciation of the franc has been significantly lower than nominal appreciation. He cited upward pressure on the Swiss currency stemming from escalating tensions in the Middle East as a factor behind the SNB’s heightened willingness to conduct market interventions.
In his presentation titled "Monetary policy in the best interests of the country," Schlegel emphasized that price stability requires a sound institutional framework and a narrowly defined monetary policy mandate.
He stated that only a narrowly defined mandate can ensure the central bank’s long-term independence, which serves to protect monetary policy from political influence.
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