SNB pledges to defend franc post-Hildebrand

The Swiss central bank has vowed to defend its floor of 1.20 Swiss francs to the euro as it seeks a replacement for departing governor Philipp Hildebrand.

The Swiss National Bank said its monetary policy will remain unchanged following chairman Hildebrand’s resignation today as a result of the US dollar/franc currency trade made by his wife last year, vowing to pursue it with “the utmost determination”.

The central bank said it regrets both Hildebrand’s decision and the circumstances that gave rise to it.

Hildebrand’s wife Kashya bought CHF400,000 worth of US dollars three weeks before the SNB introduced the euro cap last August and sent the franc’s value down sharply.

SNB vice-chairman Thomas Jordan will succeed Hildebrand, initially on an interim basis.

The franc, which rose to a four-month high of €1.2108 in the immediate aftermath of Hildebrand’s resignation, gave up most those gains after the SNB’s statement.

 

This article was first published on Investment Week

 

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