The Swiss National Bank (SNB) in its battle to curb the franc's advance decided to increase the supply of liquidity in markets, raise sight deposits to 120 billion francs from 80 billion francs and adopt foreign-exchange swap transactions to reinforce liquidity.

This step came after last week's interest rate cut and increase of sight deposits to 80 billion francs to halt the franc's appreciation which is hurting exports.

The SNB said the massive overvaluation of the franc poses a threat to the development of the economy in Switzerland and has further increased the downside risks to price stability.