The Swiss National Bank continues its foreign exchange purchases

The Swiss National Bank (SNB) bought $3.1 billion worth of Foreign Exchange in the third quarter just before the currency overvalued against the euro. The Swiss franc has continued to appreciate against the euro since September. The Switzerland, on the other hand, is concerned about the overvaluation of the currency. While the SNB considered the currency to be very overvalued in 2017, it has only recently been content to call it very valuable. The Swiss National Bank (SNB) effectively uses negative interest policy and market interventions to prevent the overvaluation of the currency. SNB Chairman Thomas Jordan and policy makers emphasize that they will continue to buy negative interest rates and foreign currency when necessary. The Swiss National Bank (SNB) has purchased 110 billion francs ($120 billion) worth of foreign currency since the pandemic began to affect the markets. The USA declared Switzerland a currency manipulator because of these foreign exchange purchases.