SNB stayed out of FX markets despite third-quarter franc rally

The Swiss National Bank (SNB) continued to refrain from significantly influencing the franc in the third quarter of 2024, even as the currency saw a rally triggered by geopolitical turmoil. +Get the most important news from Switzerland in your inbox Switzerland’s central bank bought foreign exchange worth CHF728 million ($806 million) from July to September after even smaller purchases in the previous two quarters, according to data on Tuesday. This suggests that even though the franc appreciated some 2.5% against the euro during the period, Swiss officials didn’t see much reason to intervene and instead trusted that interest-rate cuts would yield a sufficient effect. That hypothesis is backed up by the fact that the central bank unexpectedly went for a more severe half-point move earlier this month. + Read more: SNB makes surprisingly hefty cut to key rate By selling some of its own reserves in foreign denominations, the central bank can strengthen the exchange rate. In 2022 and ...