Swiss National Bank Sells Francs Amid Ongoing Haven Flows

The Swiss National Bank (SNB) continued to sell francs in the second quarter of this year, following through on its 'increased willingness' to intervene against a stronger currency. The SNB purchased foreign exchange worth CHF1.4 billion ($1.7 billion) from April through June, down from the CHF3.9 billion it bought in the first three months of the year.

The purchase was made to offset continued haven flows into Switzerland triggered by the Iran war in the period. Despite the surge in the franc at the start of the conflict, it started and ended the period at essentially the same level of around CHF0.92 per euro.

Since July, however, the Swiss currency has weakened considerably, retreating some 2.4%. The SNB's resolve to keep intervening has taken centre stage in its communications, with officials repeatedly emphasizing their readiness to intervene against a stronger franc.