Swiss National Bank (SNB)

The Swiss National Bank (SNB) is the central bank of Switzerland. It was established in 1907 and is headquartered in Zurich. The SNB operates as an independent institution with the primary objective of ensuring price stability, maintaining financial system stability, and supporting the Swiss economy.

The SNB is governed by a Board of Directors appointed by the Swiss Federal Assembly. Its independence allows it to make monetary policy decisions without political interference, which is in line with Switzerland’s political stability and independence.

The main goal of the SNB is to ensure price stability. It uses various monetary policy tools to control inflation and limit price increases. When determining monetary policy, the SNB takes into account the overall state of the Swiss economy, inflation expectations, and other macroeconomic factors.

In addition to its primary objective of price stability, the SNB can intervene in the foreign exchange market to influence the value of the Swiss Franc (CHF). If the SNB believes that the value of the Swiss Franc is too high, it can intervene in the foreign exchange market to lower its value. Conversely, if the value of the Swiss Franc decreases, the SNB can intervene to increase its value.

The SNB also has various responsibilities to maintain financial stability. It monitors Switzerland’s financial system, regulates financial institutions, and assesses risks that could threaten financial stability. The SNB manages the liquidity requirements of the banking sector and provides liquidity in financial markets.

Overall, the Swiss National Bank (SNB) is the central bank of Switzerland and is responsible for monetary policy. Its primary objective is to ensure price stability, but it also has responsibilities to maintain financial stability and support the Swiss economy. The SNB can intervene in the foreign exchange market to influence the value of the Swiss Franc and takes measures to ensure financial stability.