Swiss Franc remains in demand as safe haven says Maechler, Maechler Swiss National Bank SNB Governing Board member, speaks as she attends a news conference in Bern.
The Swiss National Bank governing board member Andrea Maechler said on Thursday that the Swiss franc continues to be in demand as market uncertainties remain elevated due to the ongoing COVID-19 epidemic.
Maechler told an event in Geneva that we are still in a territory where the Swiss Franc is high. How is the franc going to go further? I don't know where the Swiss franc is going to go. Maechler said that we're going to have a safe-haven currency. Uncertainties are high due to the COVID crisis that continues to be there. Maechler repeated the SNB's commitment to do currency market interventions to check the rise of the franc, which is now its highest level against the euro since May 2020.
Modest Swiss inflation, which has risen to around 1.2%, helped take the edge off the franc"s rise and reduce the damaging effect the currency"s strength has on Switzerland"s export-orientated economy, she said.
Maechler said that there has been quite an appreciation of the Swiss franc. She said the SNB remained committed to purchases of the market where appropriate, seeking to have the maximum impact with minimum intervention.
Maechler said that the SNB sought to have the minimum market impact on its investments with foreign currencies.