The Swiss National Bank (SNB) is the central bank of Switzerland. It is responsible for implementing monetary policy, issuing and managing the Swiss Franc currency, and maintaining financial stability in the country. The SNB is an independent institution, with the mandate to ensure price stability and to support the overall economic policy of the country.The SNB is governed by a Board of Directors, which consists of seven members appointed by the Swiss federal government. The Board of Directors is responsible for setting monetary policy, issuing and managing the Swiss Franc currency, and maintaining financial stability in the country.One of the main tools used by the SNB to implement monetary policy is interest rate policy. The SNB sets a target range for the three-month Libor rate, which is the rate at which banks can borrow from each other. It also uses other tools such as foreign exchange reserves, and open market operations such as buying or selling government bonds.The SNB is also responsible for maintaining financial stability in the country, and it closely monitors the banking sector and the overall financial system to identify potential risks and take appropriate action to mitigate them.In the recent years, the SNB has been keeping a close eye on the exchange rate of the Swiss franc, as a strong franc makes Swiss exports more expensive and less competitive. SNB has intervened in the currency market by buying foreign currencies, to weaken the franc, as well as setting a minimum exchange rate for the euro against the franc to prevent excessive appreciation.Overall, The Swiss National Bank plays a crucial role in maintaining the stability of the Swiss economy and its currency. Its actions and decisions have a direct impact on the value of the franc and the overall economic performance of the country.
