SNB's Jordan: Forex interventions most effective instrument to curb CHF's strength

An expansive monetary policy in Switzerland is now more necessary than ever, Swiss National Bank Chairman Thomas Jordan said on Tuesday, as reported by Reuters.

Additional takeaways

"Forex interventions are the most effective instrument to curb franc's strength."

"Forex interventions, negative rates are essential."

"Even though we still have scope for further interest rate cuts, the fact remains that one cannot lower interest rates indefinitely."

"Coronavirus has increased upward pressure on franc."

"Challenge will be when and how quickly to normalise policy."

Market reaction

The USD/CHF pair largely ignored these comments and was last seen losing 0.15% on the day at 0.9397.