The Swiss National Bank (SNB) will maintain the franc ceiling of 1.20 against the euro.
The SNB imposed the ceiling on the franc in September of 2011 which allowed it to stockpile foreign-currency reserves that is equivalent to 75% of Switzerland's annual economic output.
"We will maintain our current policy for as long as necessary. This monetary policy stance is needed to act within our mandate," Jordan told reporters today in Moscow during the Group of 20 meeting.
The central bank's policy review published on June 20 said that removing the ceiling is not yet within the horizon. The bank alluded to the danger of deflation in justifying the cap as it expects consumer price index to drop 0.3 percent in 2013.
The International Monetary Fund has authorized SNB to impose a fee on banks for their excess deposits. But that's under the condition that the franc will be in danger of appreciating.
Join the Conversation