FRANKFURT, July 2 (Reuters) - The Swiss franc is valued too highly on the foreign exchange markets despite the central bank’s intervention, Swiss National Bank chief Thomas Jordan was quoted on Monday as saying.
To shield the economy from the threat of deflation and recession, the Swiss National Bank set a cap of 1.20 francs to the euro last September after investors fleeing turmoil in the euro zone pushed the safe-haven franc close to parity against the common currency.
“We are ready to defend the minimum exchange rate of the currency with unlimited purchases,” Jordan told German daily Handelsblatt.
“The fair value is clearly above this minimum rate.”
Jordan was also quoted as saying the bank regarded as overblown the stock market reaction after the central bank advised Swiss bank Credit Suisse to improve its capital.
“We used exclusively public information for our analysis,” he said. “The central bank did not destabilise Credit Suisse in any way.”
Reporting by Sakari Suoninen