On Friday, the Swiss National Bank (SNB) stated that Switzerland’s second-quarter current account surplus narrowed by roughly 1 billion Swiss francs (currency and legal tender of Switzerland and Liechtenstein) to 11 billion Swiss francs (USD 11.23 billion).

During the second quarter, the Swiss National Bank acquired 1.95 billion francs in reserve assets, down from 3.24 billion in the first three months, signalling that the bank was more relaxed about the franc’s strength as it focused on combating imported inflation.

On Thursday, the SNB also reported that it would still use forex interventions, buying foreign currencies to rein in an ‘excessive appreciation of the Swiss franc or selling them to bolster the currency if needed.

Established in 1906-07, it is the central bank of Switzerland. Headquartered in Bern and Zurich, it is responsible for the nation’s monetary policy and is the sole issuer of Swiss franc banknotes. It has mixed ownership, with about 78 per cent owned by Swiss public entities, while the rest are publicly traded in SIX.