SNB (Swiss National Bank) explained
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By Ken Chigbo, Founder, KenMacro. Published 2026-05-13.
Quick answer
The SNB, or Swiss National Bank, is Switzerland's central bank. It sets the policy rate, manages a large FX reserve balance sheet, and intervenes directly in currency markets to influence the Swiss franc. Traders watch it because unscheduled SNB action can move CHF pairs sharply, as seen in January 2015.
What is SNB?
The Swiss National Bank is Switzerland's central bank, headquartered in Zurich and Bern. It runs monetary policy with a price stability mandate, defined as inflation below two percent over the medium term, and uses the SNB policy rate as its main instrument. Unlike most G10 peers, the SNB also actively manages the franc through foreign exchange interventions, accumulating large reserves in euros, dollars, and global equities. The Governing Board, currently three members, decides policy at quarterly Monetary Policy Assessments. The SNB's willingness to act outside scheduled meetings, and its tolerance for an outsized balance sheet, distinguish it from the ECB and Federal Reserve.
How traders use SNB
Retail and institutional traders treat the SNB as a tail-risk central bank for CHF crosses, particularly EUR/CHF, USD/CHF, and GBP/CHF. Around the quarterly Monetary Policy Assessment, desks position for changes to the policy rate, the inflation forecast, and the language on FX intervention. The phrase describing the franc as highly valued, fairly valued, or no longer highly valued is parsed closely, because it signals the SNB's tolerance for further appreciation. Outside scheduled meetings, sight deposit data published weekly hints at whether the SNB is selling francs in the market. Traders also remember the 15 January 2015 removal of the 1.20 EUR/CHF floor, which moved the pair by roughly thirty percent intraday and remains the benchmark example of SNB-driven gap risk.
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Common misconceptions about the SNB
The first misconception is that the SNB targets an exchange rate. Since 2015 it has not, though it openly intervenes when the franc moves in a way that conflicts with its inflation goal. The second is that SNB meetings follow the same cadence as the ECB or Fed. They do not; assessments are quarterly, with a single press conference. The third is that a strong franc always reflects safe haven demand. Much of the franc's structural strength comes from Switzerland's persistent current account surplus and low domestic inflation, which the SNB then offsets through reserve accumulation rather than through capital controls.
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Frequently asked
How often does the SNB meet?
The SNB holds four scheduled Monetary Policy Assessments each year, typically in March, June, September, and December. Each is accompanied by a written policy statement, an updated conditional inflation forecast, and a press conference led by the Chair of the Governing Board. The SNB can and does act between meetings if conditions warrant, including adjusting the policy rate or intervening in FX, which makes it less predictable than central banks tied strictly to a meeting calendar.
Does the SNB still intervene in the FX market?
Yes. The SNB has stated repeatedly that FX intervention remains part of its policy toolkit alongside the policy rate. It may sell francs when the currency is too strong relative to its inflation outlook, or buy francs when it is too weak. Traders track weekly sight deposit figures and quarterly intervention disclosures to estimate activity. The scale of intervention has varied significantly over recent cycles, from heavy euro buying in the 2010s to franc selling in tighter periods.
Why did the SNB remove the EUR/CHF floor in 2015?
On 15 January 2015 the SNB abandoned its 1.20 EUR/CHF floor, which had been in place since September 2011. The decision came shortly before the ECB launched large scale quantitative easing, which would have forced the SNB to print unlimited francs to defend the floor against a falling euro. Defending it became inconsistent with a sustainable balance sheet, so the SNB removed the cap without warning. EUR/CHF fell sharply within minutes, causing significant losses across the retail brokerage industry.
What is the SNB policy rate?
The SNB policy rate is the main instrument used to signal the stance of Swiss monetary policy. The SNB steers short-term secured franc money market rates close to this level, primarily through the remuneration of sight deposits held by banks at the SNB. The rate spent several years in negative territory after 2015 to discourage franc appreciation, before being moved back into positive territory once inflation pressures returned. Changes are announced at the quarterly assessments.
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