Swiss National Bank Chairman Martin Schlegel said today that the situation in the Middle East continues to be marked by significant uncertainty and that the central bank accounted for recent developments before finalizing its monetary policy decision.
"The situation is still very uncertain," Schlegel said when asked specifically about the U.S.-Iran peace deal, adding that it could not be ruled out that any apparent deescalation is only temporary. He emphasized that overall uncertainty remains elevated and that energy markets are largely shaped by conditions in the Middle East. He further noted that geopolitical and trade uncertainty is very high.
On the question of currency market action, Schlegel said the SNB's readiness to intervene in the foreign exchange market is higher if required, though he cautioned it is hard to say whether that readiness is greater or smaller than before. He also observed that the franc has weakened slightly since the bank's last meeting.
Schlegel stressed that the bank assesses the entire situation when considering interventions. He said many elements feed into the exchange rate, including the interest rate differential with the European Central Bank and the SNB's increased willingness to intervene in FX markets.
Looking ahead, the chairman said future developments are contingent on how the situation in the Middle East evolves. He also made clear that there are no plans to delist the Swiss National Bank.
The comments followed the SNB's recent policy decision, which incorporated an evaluation of geopolitical developments. Schlegel's remarks underlined the bank's view that external risks, particularly in energy and trade channels, remain a prominent influence on monetary and currency dynamics.