Published by Global Banking & Finance Review®
Posted on December 31, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleThe Swiss National Bank reduced foreign currency purchases in Q3 2025 due to franc appreciation and US trade policies, impacting inflation targets.
ZURICH, Dec 31 (Reuters) - The Swiss National Bank bought 75 million Swiss francs' ($95 million) worth of foreign currencies in the third quarter of 2025, a sharp reduction from the previous three-month period, data from the central bank showed on Wednesday.
During the second quarter, the SNB bought 5.06 billion francs' worth of foreign currencies as economic uncertainty stirred by U.S. trade policy piled appreciation pressure on the safe-haven Swiss franc.
U.S. President Donald Trump unveiled a raft of tariffs against trade partners in the second quarter, and the value of foreign currencies purchased by the SNB in that period was the highest quarterly total in more than three years.
In August, Trump imposed 39% tariffs on Switzerland. A deal to reduce those levies was not reached until November.
The franc has appreciated by almost 15% against the dollar this year, according to LSEG data. Against the euro, however, it has only gained slightly. The bulk of Switzerland's foreign trade is with euro zone countries.
Buying foreign currencies can help the SNB contain the appreciation of the franc. A rapid strengthening of the franc can put downward pressure on import costs.
The SNB targets annual inflation of 0-2% and the rate is currently right at the bottom end of that range.
($1 = 0.7929 Swiss francs)
(Writing by Dave Graham; Editing by Hugh Lawson)
Foreign currency refers to any currency that is not the domestic currency of a country. It is used in international trade and investment, allowing businesses and individuals to conduct transactions across borders.
Monetary policy is the process by which a central bank manages the supply of money and interest rates in an economy. It aims to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It oversees the banking system and implements monetary policy to stabilize the economy.
Currency hedging is a financial strategy used to protect against potential losses from fluctuations in exchange rates. It involves using financial instruments, such as options or futures, to offset the risk of adverse currency movements.
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