SNB Refrained From FX Interventions After No-Manipulation Pledge
(Bloomberg) — The Swiss National Bank largely kept out of currency markets in the final three months of 2025, avoiding interventions after it promised to the US not to steer the franc for an economic advantage.
Switzerland’s central bank purchased foreign exchange worth 5.2 billion francs ($6.6 billion) in 2025, according to its annual report published on Tuesday. While it didn’t spell out individual quarters, it already had an intervention tally of 5.182 billion francs after nine months. That suggests it didn’t buy or sell in a significant way for the remainder of the year.
Last year’s franc sales mostly occurred in the second quarter, when the SNB moved to counteract a spike in its currency triggered by Donald Trump’s global “Liberation Day” tariff announcements.
By buying assets in foreign denominations, the central bank can weaken its own currency’s exchange rate. Swiss officials have used this mechanism in the past to keep a lid on the franc. This has seen the SNB’s balance sheet grow to a size some observers deem dangerous as it can yield large profits but also large losses.
During the fourth quarter, the franc rose slightly against the euro. It has surged to decade highs since the start of this year as investors sought havens amid geopolitical turmoil, lured by Switzerland’s modest debt, a stable economy and predictable policies.
The central bank’s resolve to cap gains will take center stage this week as policymakers gather for their first rate decision of the year on Thursday. Swiss officials have already broken their usual silence to signal their willingness to intervene has increased in face of the war in Iran.
While any change in language on foreign exchange will be notable, economists are unanimous in predicting that the rate will stay at zero. The franc is a key focus for the SNB because its gains weigh on already feeble inflation via lower import costs.
Pledge to US
On Sept. 29, the SNB issued a joint statement with the US Treasury pledging to keep its monetary policy focused on price stability. The document was the product of an ongoing dialog between the two countries’ officials, which intensified after the US put Switzerland on a watchlist for currency manipulation.
The SNB said in its annual report on Tuesday that “the joint statement confirms that foreign exchange market interventions are an important monetary policy instrument for the SNB in the fulfillment of its mandate to ensure price stability.”
The SNB’s past interventions earned Switzerland a currency manipulator tag during Trump’s first term, though that label was subsequently removed. SNB President Martin Schlegel has said that the threat of that classification won’t stop the institution from steering the currency if required.
The central bank only publishes data with a three-month delay, so the first-quarter tally showing whether the SNB continued its purchases won’t be revealed until June.
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