Thomas Jordan, the vice president of the Swiss National Bank, said that a temporary peg of the franc is part of the bank's toolbox, causing the Franc to fall as policy makers struggle to stem a record breaking rally.
In an interview with Tages-Anzeiger newspaper which was published today Jordan said when he was asked about peg of the franc Any temporary measures to influence the exchange rate are permissible under our mandate as long as these are consistent with long-term price stability. And Walter Meier the Swiss National Bank spokesman confirmed the remarks.
While President Philipp Hildebrand has signaled the central bank will no give up its sovereignty, some economists have said the franc's surge toward euro parity is adding pressure on the SNB to consider a peg for the first time since the Bretton Woods currency system was abandoned in 1973.
A fixed and permanent peg of the franc to the euro isn't compatible with our constitutional and legal mandate to conduct an independent monetary and exchange rate policy. Hildebrand said earlier this month.
Jordan didn't say whether the SNB currently considers a currency peg, yet the comments highlight the scale of the crisis engulfing the Swiss economy as policy makers try to find measures to prevent investors piling into the franc as a haven in times of crisis.