A member of the governing board of the Swiss National Bank said today that the Swiss franc was still viewed as a "safe haven" currency, particularly in light of the global economic crisis, according to dpa. In a speech in Luxembourg and posted on the SNB's Website, Thomas Jordan said the appreciation of the Swiss franc since the crisis hit was a result of the currency's perceived safety in a volatile economy. The appreciation, however, caused the central bank to intervene to bring down the value of the franc, particularly versus the euro, so as to not disrupt consumer prices of imports or make Swiss exports too expensive, the central banker said. The bank has acknowledged intervening at least once in March to prevent a rise in value, and is believed to have take action on more occasions. The SNB has also become active in foreign currency markets, buying foreign money to ensure a target value of the franc. On Thursday, it said it would continue to supply dollar liquidity until January and remain engaged in swaps of euros and francs with other central banks. In a policy statement last week, the bank announced it would continue with an expansionary monetary policy, aiming to keep interest rates low, supply liquidity to markets and prevent an appreciation of the franc. Citing the still existing risk of deflation, the bank said it would not yet tighten its policy. The bank's target range for interest rates charged between banks would stay at 0.0-0.75 per cent, with the banking aiming for the lower end, at 0.25 per cent. The Swiss economy is set to shrink up to 2 per cent this year, with growth of under 1 per cent in 2010. Unemployment is expected to continue to rise, and might peak at 5.5 per cent. It currently stands at about 3.8 per cent. On Thursday the Swiss parliament agreed on the major parts of a stimulus package worth about 300 million dollars, aimed at combating youth unemployment, though the government had wanted more spending.
