SNB

The Swiss National Bank (SNB) is the central bank of Switzerland. Its core responsibilities include formulating and implementing monetary policy to achieve price stability, maintaining financial system stability, issuing Swiss banknotes, and managing the country’s foreign exchange and gold reserves. The SNB also oversees the smooth operation of payment systems and contributes to financial market stability through research and analysis.

History and mandate: The SNB was established in 1907 under the National Bank Act to provide a unified monetary authority for Switzerland. Its primary objective is price stability, with financial stability and an adequate supply of banknotes as important secondary aims. Monetary policy is conducted by the bank’s Governing Board, which sets policy instruments and communicates its assessments through reports and press releases.

Organization and operations: The SNB is headquartered in Bern and operates with staff nationwide. It uses a range of tools to conduct monetary policy, including the policy rate, open-market operations, and standing facilities. It engages in foreign-exchange operations and manages official reserves to influence liquidity and, when necessary, exchange-rate movements. The bank also provides liquidity to the banking system and coordinates with international institutions on global financial stability. Its research and publications inform policymakers, financial institutions, and the public.

Notable events: A defining episode in SNB history was the 2011 decision to implement an exchange-rate floor of 1.20 Swiss francs per euro, which it defended until January 2015, when it unexpectedly abandoned the cap, triggering a sharp appreciation of the Swiss franc. Since then the SNB has pursued its price-stability mandate with gradual normalization of policy in response to evolving inflation and economic conditions.

Overall role: The SNB remains a central figure in Swiss and international financial markets, integrating domestic monetary stability with global financial developments.