BRUSSELS: The Swiss franc is still significantly overvalued and the country's central bank remains prepared to intervene when necessary in currency markets, its chairman said on Tuesday.
The Swiss National Bank (SNB) shocked financial markets last month by scrapping its 1.20 per euro cap on the franc, sending the currency soaring and Swiss stocks plunging.
The franc has since pared some of those gains, but it is still more than 10 percent up compared with the day before the cap was removed.
"Our currency is still trading at a significantly overvalued level," SNB chairman Thomas Jordan said in a speech at a university in Brussels.
On Monday, data showed Swiss sight deposits had levelled off last week, after several weeks of increases that suggested the central bank had bought euros to weaken the franc.
"The SNB will continue to take the exchange rate situation into consideration when formulating its monetary policy," Jordan said.
"It will therefore remain active in the foreign exchange market, should this prove necessary in order to influence monetary conditions."
Jordan echoed comments he made immediately after the Jan. 15 move, saying the SNB had no choice but to scrap the peg in order to maintain control over its balance sheet and pursue a stability-oriented policy.
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