In an interview with Bloomberg TV, SNB President Thomas Jordan noted that for a prolonged period, the Swiss economy experienced primarily a nominal appreciation of its currency. He described that as “very helpful” as it helped shield Switzerland from external inflationary pressures, providing a buffer against global economic fluctuations.
However, the situation evolved in the latter part of the year with Swiss Franc experiencing real appreciation. “That makes the situation for some of our firms more difficult,” Jordan added.
The SNB President also indicated that these recent currency movements would be a critical factor in the central bank’s next quarterly decision. The shift from nominal to real appreciation in Swiss Franc will be a key consideration, as it alters the economic context within which SNB makes its policy decisions.
