SNB Sells Francs Worth CHF1.4 Billion in Q2 Haven Effect Efforts

The Swiss National Bank (SNB) continued to sell francs in the second quarter as part of its efforts to counter the haven effect triggered by the Iran war. According to data released on September 30, the SNB purchased foreign exchange worth CHF1.4 billion ($1.7 billion) from April through June.

This is down from the CHF3.9 billion it bought in the first three months of the year, suggesting that officials were forced to offset continued haven flows into Switzerland. The surge in the franc at the start of the conflict prompted the SNB to declare its heightened readiness stance in a rare unsolicited statement in March.

However, since July, the Swiss currency has weakened considerably, retreating 2.4% from its earlier levels. This is despite the central bank's resolve to keep intervening against a stronger currency. In June, policymakers softened their message slightly, adding that they have increased willingness to intervene 'if necessary'.