SNB’s Schlegel Says We’re Not ‘Adding Value’ With Views on Franc

This content was published on September 25, 2025 - 12:55

2 minutes

(Bloomberg) — Swiss National Bank President Martin Schlegel says there’s no longer much point in giving a running commentary on the strength of the franc.

The chief of a central bank that frequently labeled the currency as “overvalued” or “highly valued” until 2022, when it began raising interest rates, suggested in an interview that such a practice isn’t helpful anymore.

“We saw that it’s no longer adding value if we give a reassessment of the strength of the Swiss franc every quarter,” Schlegel told Bloomberg Television in Zurich. Asked if he still thinks it’s overvalued, he replied: “Oh, we do not comment on this.”

His perspective chimes with the doctrine that policymakers appear to have evolved over time, of responding more judiciously to the strength of the currency rather than reacting to every jolt by traders. Even so, Schlegel insists that the SNB is prepared to act if it has to.

“I can assure you that we are ready to use FX interventions on both sides of the market if it’s necessary,” he said.

The franc has rallied broadly all year and hovers near a decade high versus the dollar hit last week as investors have focused on its status as a haven play in times of uncertainty, even as the SNB has been slashing rates. Since January, it has climbed more than 12% versus the dollar and nearly 1% against the euro, making it among the best-performing G-10 currencies this year.

The SNB kept its rate at zero on Thursday, halting easing after six consecutive quarterly moves.