SNB chief says Swiss franc overvalued, more room to intervene in fx market

Aug 1 The Swiss National Bank has room to intervene in the foreign exchange market, with the Swiss franc considered overvalued to the euro, the bank’s chairman said on Monday.

“We’re convinced that given the difficult situation with an overvalued Swiss franc, a negative output gap, and negative inflation, the current approach is the right one – expansion in monetary policy with negative rates and willingness to intervene,” said SNB Chairman Thomas Jordan at an international central bankers conference in Bali.

The SNB has intervened to weaken the franc after Britain voted on June 23 to leave the EU, as investors fleeing the plunging pound sought refuge in the franc. (Reporting by Gayatri Suroyo; Writing by Randy Fabi; Editing by Kim COghill)

Source: Reuters

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