Consequently, the SNB is present in the foreign exchange market at all times and is always prepared to purchase unlimited quantities of euros at CHF 1.20 per euro, in order to enforce the minimum exchange rate. When trading took place at less than CHF 1.20 per euro, it was only for a few seconds and resulted from market idiosyncrasies. Since 6 September, the best rate in the market for the sale of euros against Swiss francs has never fallen below CHF 1.20. The SNB was thus able to successfully enforce the minimum exchange rate even under extremely difficult conditions. BIS central bankers’ speeches  3  These considerations clearly show that the introduction of a minimum exchange rate is associated with risks. Under certain circumstances, implementing such a rate can lead to a very considerable expansion of foreign currency reserves. The SNB is prepared to bear the risk. Indeed, in summer 2011, the situation had become so acute that, by early September, the SNB felt that there was no longer any alternative to introducing a minimum exchange rate. Doing nothing would have had an extremely negative impact on our economy. Even at a rate of CHF 1.20 per euro, the Swiss franc remains overvalued. We are acutely aware that considerable challenges still remain for the Swiss economy, despite the minimum exchange rate. One particular reason for this is the fact that the international economy is recovering at only a moderate pace. In addition, there is a very high level of uncertainty in the international environment.
In doing so, we take account of the development of the economy and make a contribution to the stability of the financial system. The SNB pursues a monetary policy that serves the interests of the country as a whole, and we fulfil this mandate as an independent central bank. To do this, we continue to rely on the total commitment of our staff, whom I would like to thank – also in the name of my colleague,  4  BIS central bankers’ speeches  Jean-Pierre Danthine – for their hard work and their solidarity with the SNB. We thank our shareholders for their continuing support. And we thank you all for taking such a great interest in the activities of the SNB. Finally, we would also like to thank our former colleague and Chairman of the SNB Governing Board, Philipp Hildebrand, for the good collaboration we enjoyed over the years. We very much regret his resignation and the circumstances leading up to it. Thank you for your attention. BIS central bankers’ speeches  5