The SNB sold 3.9 billion CHF in the first quarter to curb the appreciation of the franc

The Swiss National Bank sold 3.9 billion Swiss francs in the first quarter to counteract safe-haven capital inflows. The institution remains willing to intervene in light of the persistent strength of the currency.

The Swiss National Bank (SNB) has intensified its intervention in the foreign exchange markets to curb the appreciation of the Swiss franc, according to first-quarter data for 2026. The institution sold 3.9 billion CHF in the first three months of the year, a clear sign of its determination to prevent the currency from soaring.

Rabobank's senior FX strategist, Jane Foley, notes that the SNB has been actively countering safe-haven inflows since the conflict with Iran. The institution has combined direct sales of francs with verbal warnings about its willingness to intervene if necessary.

A key tool for monetary policy

The SNB uses currency intervention as a complementary instrument to interest rates. With low inflation and moderate growth risks, the central bank considers that currency sales are an effective way to deter speculative purchases and prevent excessive appreciation of the franc.

Last week, the president of the SNB, Schlegel, reiterated that the central bank is willing to intervene in the market if the situation requires it. This stance aims to maintain exchange rate stability without the need to adjust interest rates, which remain low.

For investors and businesses operating with the Swiss franc, this intervention represents a temporary ceiling on the appreciation of the currency. The SNB aims to ensure that the CHF does not become a burden for the Swiss export economy, which is already suffering from weak global demand.

Interest rate outlook

Although the risks of a rate hike would increase if the European Central Bank (ECB) prolongs its restrictive stance, the potential for tightening by the SNB remains very balanced. The relative strength of the CHF reduces the need to raise rates to control inflation, which remains contained.

Foley explains that the SNB's approach will continue to emphasize intervention as a policy tool to deter speculative purchases. This means that, for now, interest rates will remain stable while the central bank uses currency sales to manage the exchange rate.

For savers and investors in Swiss francs, the SNB's intervention implies that the currency will not appreciate as quickly as it might without it. Those holding assets in CHF can expect greater stability in the short term, although the risk of future appreciation persists if the central bank relaxes its intervention.

The SNB will publish its next monetary policy report in June, where it is expected to update its economic forecasts and its stance on currency intervention. Until then, the market will be attentive to any statements from its officials regarding the evolution of the franc.