CHF is at risk, even if the SNB is doing what it can

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Economists at Commerzbank analyze the SNB’s strategy and its impact on the Swiss franc.

SNB may be able to maintain intervention strategy, but not permanently

In the short to medium term, the Swiss National Bank (SNB) is likely to be able to maintain its intervention strategy, but this is not a permanent solution.

The strategy will only work if inflationary pressures resolve on their own in the coming months or quarters. This is the most likely scenario, but far from a certainty. So while the SNB is doing everything it can to ensure that those with long CHF positions have a good time, the CHF remains at risk.