SNB: FX interventions rise sharply in 2020, nothing to do with currency manipulation

The massive increase in the Swiss National Bank’s (SNB) foreign currency interventions has nothing to do with currency manipulation, the central bank said in its annual report on Monday.

Key takeaways

“Swiss National Bank's foreign currency interventions rise to CHF110 billion in 2020, up from CHF13.2 bln in 2019.”

“Size of the balance sheet is direct consequence of monetary policy.”

“It has sufficient scope for expanding its balance sheet further, should this be necessary for monetary policy. “

“Its foreign exchange market interventions and the associated expansion of the balance sheet are currently a necessary monetary policy instrument.”

“Its foreign exchange market interventions have nothing to do with currency manipulation.”