The Swiss franc experienced a decline in value as the Swiss National Bank (SNB) reiterated its dedication to maintaining the EUR/CHF 1.20 exchange rate floor. This policy is a key component of the SNB’s strategy to shield the Swiss economy from the negative consequences of an excessively strong currency.

The central bank has consistently emphasized its willingness to intervene in the foreign exchange market to defend the minimum exchange rate. The SNB views the overvaluation of the Swiss franc as a significant threat to economic stability and growth.

Economists generally believe that the SNB will continue to uphold the currency peg as long as necessary, despite the potential costs associated with large-scale interventions. The central bank’s commitment reflects its assessment of the risks posed by a strong franc to Swiss exports and overall economic performance.

The SNB’s resolve to enforce the minimum exchange rate remains firm, signaling its determination to safeguard the Swiss economy from currency-related pressures.