SNB (Swiss National Bank)

The Swiss National Bank (SNB) is the central bank of Switzerland. Established in 1907, the SNB is responsible for determining Switzerland’s monetary policy, controlling the money supply, and ensuring price stability through various tools. It also manages the issuance of the Swiss franc and the country’s foreign exchange reserves.

The SNB is an institution that operates under the Swiss Federal Government, with its headquarters located in Zurich. Its independence is guaranteed by the Swiss Constitution. The SNB works to maintain the stability of the Swiss economy and the reliability of the financial system.

The primary objective of the SNB is to ensure price stability. The bank aims to keep inflation at a low and stable level. To achieve this, the SNB uses monetary policy tools to control the money supply and interest rates. The bank takes measures to loosen or tighten monetary policy as needed to maintain price stability.

The SNB also plays an active role in the foreign exchange markets. The Swiss franc is often considered a safe-haven currency and attracts demand from investors during global financial turbulence. The SNB can intervene in the foreign exchange markets to protect the value of the Swiss franc and prevent it from becoming overvalued. These interventions can be conducted by using foreign exchange reserves.

In addition to its monetary policy responsibilities, the SNB is also involved in the supervision of the banking system, ensuring financial stability, and overseeing the functioning of payment systems. The bank conducts economic analysis, based on which it makes monetary policy decisions and monitors economic developments.

The SNB is a central bank with an international reputation. It uses various tools to maintain the stability of the Swiss economy and the reliability of the financial system. The activities of the SNB can have a significant impact on the Swiss economy and global financial markets.