Switzerland’s central bank bought foreign currency equivalent to 1.44 billion Swiss francs in the second quarter, down from 3.94 billion in Q1, continuing an "increased willingness" to act against a strong franc after geopolitical shocks.
The Swiss National Bank purchased 1.44 billion CHF (about $1.73 billion) of foreign currency in Q2 2026.
Q2 purchases were smaller than Q1’s 3.94 billion CHF, reflecting a reduction in intervention volume.
The interventions are aimed at countering appreciation of the Swiss franc, a common safe-haven response.
# Summary
Bank (SNB) bought 1.44 billion Swiss francs of foreign currency during the second quarter of 2026. The purchases, equal to roughly $1.73 billion at the time, are part of the SNB's effort to limit rapid appreciation of the Swiss franc. The second-quarter total is notably lower than the 3.94 billion francs the bank bought in the first quarter.
# What the SNB did
The SNB reported foreign currency purchases of 1.44 billion CHF in Q2 2026. The bank describes these operations as part of its strategy to resist an overly strong franc. The earlier quarter featured larger interventions: the SNB bought 3.94 billion CHF in Q1.
# Why the SNB intervened
The SNB identifies the franc's safe-haven status and related rapid gains as reasons for intervention. The bank signalled an "increased willingness" to act after the onset of the Middle East conflict, which had heightened demand for safe-haven currencies and contributed to franc strength.
# Market context
# What this means for markets
For currency markets: reduced intervention volumes in Q2 versus Q1 could signal a temporary easing of upward pressure on the franc, but the SNB's stated willingness to act remains a constraint on persistent appreciation.
For traders and portfolio managers: the SNB's readiness to intervene remains a factor to monitor alongside other drivers such as interest-rate differentials, global risk sentiment, and geopolitical developments.
For Swiss monetary policy: interventions are an instrument the SNB uses alongside its policy-rate decisions. The bank has publicly linked intervention readiness to recent geopolitical events that lift demand for safe-haven assets.
# Bottom line
The SNB continued active management of the franc in Q2 2026 but at a lower scale than in Q1. The bank's public stance — an "increased willingness" to intervene after the Middle East conflict began — means the franc's future moves may prompt further foreign-currency purchases if appreciation accelerates.
Of this, $132.980 billion came through FCNR(B) deposits, while overseas foreign currency borrowings (OFCBs) brought in $5.320 billion, and external commercial borrowings (ECB) $5.296 billion
The RBI had announced the USD-INR Forex Swap facility covering FCNR(B) deposits, External commercial borrowings (ECBs) and Overseas foreign currency borrowings (OFCB) inflows on June 8, 2026 to attract dollar flows and shield the falling rupee.
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Foreign currency purchases on the domestic market with settlement on September 7 totaled $68.84 mln
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