The President of the Swiss National Bank, Thomas Jordan, warned on Thursday that U.S. protectionist tendencies pose a significant risk to the Swiss economy and could once again stimulate demand for the franc, a traditional safe haven for investors.
– The risks have not yet materialized, but if international trade does not function well, it is harmful for everyone, Jordan said in an interview on Thursday with Swiss television SRF.
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– Safe havens are sought during times of political uncertainty or significant changes in financial markets. Protectionism can also be a trigger, he stated.
Investors could quickly start buying francs if risks such as protectionism or conflict between Europe and Russia arise, Jordan emphasized.
His interview coincided with the conclusion of the regular SNB meeting, during which an ultra-loose monetary policy was maintained. Such a decision was expected by all economists who participated in the Reuters survey.
