CHF: The SNB Is In A Pickle

Stemming the appreciating Franc is harder than you think.

The CHF has stood out in the G10 space over the past month. USD/CHF is down almost 10% YTD, with even the bounce back in EUR cross not immune from a 1.2% slip against Swissie over the same period.

Yet one player that’s not happy about the move is the Swiss National Bank (SNB). In fact, the real effective exchange rate (REER) is now near the highest level in a decade.

The SNB doesn’t want a strong France for various reasons. Yet, faced with negative interest rates, potential accusations of being a currency manipulator, and more, the central bank is in a real pickle about where to go from here.