Implementation of monetary policy
The implementation of monetary policy is the third element of the SNB’s monetary policy strategy, in addition to the definition of price stability and the conditional inflation forecast. Find an overview of the monetary policy instruments and a Q&A on the implementation of monetary policy here.
Overview monetary policy instruments
The SNB’s instruments comprise open market operations, standing facilities and the interest rate on sight deposits at the SNB.
The SNB applies interest to, or 'remunerates', sight deposits in Swiss francs held by banks and other financial market participants at the SNB. By remunerating sight deposits, the SNB influences the interest rate level on the money market, so that the secured short-term Swiss franc money market rates remain close to the SNB policy rate. The SNB uses a system of tiered remuneration. This encourages liquidity redistribution between sight deposit account holders and thereby promotes an active money market. For sight deposits up to a certain threshold, the SNB policy rate is applied. Sight deposits above this threshold are remunerated at the SNB policy rate minus a discount. Sight deposits which are held to meet minimum reserve requirements are not remunerated.
In the case of open market operations, the SNB takes the initiative in the transaction. Open market operations include repo transactions, the issuance, purchase and sale of its own debt certificates (SNB Bills), and foreign exchange transactions. They serve primarily to manage liquidity in order to keep the short-term money market rates in Swiss francs close to the SNB policy rate.
In the case of liquidity-providing repo transactions, the SNB purchases securities from a bank (or another financial institution admitted to the repo market) and credits the corresponding sum in Swiss francs to the counterparty’s sight deposit account with the SNB. At the same time, it is agreed that the SNB will resell securities of the same type and quantity at a later date. In the case of a liquidity-absorbing repo, the transactions are conducted in the opposite direction. For the term of the repo agreement, the cash taker generally pays interest (the repo rate) to the cash provider. Repo transactions can be conducted by way of auction or on a bilateral basis with a wide range of counterparties.
Issuing SNB Bills enables the SNB to absorb liquidity. It can repurchase SNB Bills via the secondary market in order to increase the supply of liquidity to the financial system where necessary.
In order to fulfil its monetary policy mandate, the SNB may purchase and sell foreign currency against Swiss francs on the financial markets. Foreign exchange transactions conducted by the SNB are usually spot or swap transactions. In foreign exchange swaps, the purchase (sale) of foreign currency at the current spot rate and the sale (purchase) of the foreign currency at a later date are simultaneously agreed. They serve to manage liquidity in Swiss francs. The SNB can conclude foreign exchange transactions with a wide range of domestic and foreign counterparties.
Moreover, the SNB can purchase and sell securities in Swiss francs. This instrument has not been used for a number of years.
In the case of standing facilities, the SNB only sets the conditions under which eligible counterparties can, on their own initiative, draw liquidity. Standing facilities include the intraday facility, the liquidity-shortage financing facility and the SNB COVID-19 refinancing facility (CRF).
During the day, the SNB provides its counterparties with interest-free liquidity (intraday facility) through repo transactions so as to facilitate the settlement of payment transactions. The funds received must be repaid by the end of the same bank working day at the latest.
To bridge unexpected liquidity bottlenecks, the SNB offers a liquidity-shortage financing facility. For this purpose, it grants its counterparties a limit which must be covered by at least 110% collateral eligible for SNB repos. Counterparties can obtain liquidity up to the limit granted until the following bank working day. The liquidity-shortage financing facility is granted in the form of a special-rate repo transaction. The special rate is calculated as the SNB policy rate plus a surcharge, and is at least 0%.
Furthermore, since 26 March 2020, the SNB’s monetary policy instruments have included the SNB COVID-19 refinancing facility. Under the CRF, liquidity can be drawn at the SNB policy rate as a covered loan against credit claims in accordance with the COVID-19 ordinance on joint and several guarantees (COVID-19-Solidarbürgschaftsverordnung) and against other collateral the SNB deems eligible. The loan has no fixed term. It can be raised or reduced daily by the bank drawing the loan.
Guidelines on monetary policy instruments
Interest on sight deposits
The SNB applies interest to, or 'remunerates', sight deposits in Swiss francs held by banks and other financial market participants at the SNB. By remunerating sight deposits, the SNB influences the interest rate level on the money market, so that the secured short-term Swiss franc money market rates remain close to the SNB policy rate. The SNB uses a system of tiered remuneration. This encourages liquidity redistribution between sight deposit account holders and thereby promotes an active money market. For sight deposits up to a certain threshold, the SNB policy rate is applied. Sight deposits above this threshold are remunerated at the SNB policy rate minus a discount. Sight deposits which are held to meet minimum reserve requirements are not remunerated.
Terms of Business
Instruction sheet
Repo transactions
The SNB uses repo transactions to manage the Swiss franc liquidity in the financial system, thereby keeping the secured short-term Swiss franc money market rates close to the SNB policy rate. These are to be distinguished from foreign currency repo transactions, which the SNB uses to manage its foreign currency investments, as well as from repo transactions within the context of liquidity swap agreements to provide SNB counterparties with foreign currencies.
Issuance of SNB Bills
Issuance calendar
Generally, two auctions of SNB Bills are held every Thursday between 11.00 and 11.30. If a Thursday is not a bank business day, the two auctions will take place on the preceding bank business day.
The terms of the auctioned SNB Bills follow a four-week rhythm:
- Week one: 28-day and 84-day terms;
- Week two: 28-day and 168-day terms;
- Week three: 28-day and 84-day terms;
- Week four: 28-day and 336-day terms.
The issuance calendar is published on this page four weeks before the end of each quarter. Deviations and changes are possible.
The auction conditions are published on the day preceding the auction at 16.00 under the 'Announcements and conditions' heading.[NR1] The 'SNB Bills - Issue Conditions' including sales restrictions apply.
Issuance calendar SNB Bills
Announcements and conditions
Auction results
Archive Issued SNB Bills
Foreign exchange market interventions
In order to fulfil its monetary policy mandate, the SNB may purchase and sell foreign currency against Swiss francs on the financial markets. Foreign exchange transactions conducted by the SNB are usually spot or swap transactions. In foreign exchange swaps, the purchase (sale) of foreign currency at the current spot rate and the sale (purchase) of the foreign currency at a later date are simultaneously agreed. They serve to manage liquidity in Swiss francs. The SNB can conclude foreign exchange transactions with a wide range of domestic and foreign counterparties.
SNB COVID-19 refinancing facility (CRF)
Since 26 March 2020, the Swiss National Bank has made available a standing facility called the SNB COVID-19 refinancing facility (CRF) in order to cushion the economic impact of the coronavirus pandemic. Under this facility, liquidity can be drawn at the SNB policy rate as a covered loan against credit claims in accordance with the COVID-19 ordinance on joint and several guarantees (COVID-19-Solidarbürgschaftsverordnung) and against other collateral the SNB deems eligible.
Instruction sheets and forms
Additional documents
Communication on the CRF
Foreign exchange operations
Within the framework of various swap arrangements, the SNB can, where necessary, provide liquidity in foreign currencies, thus serving as a liquidity backstop. While such measures have no effect on the supply of money in Swiss francs, they enable the SNB’s counterparties to gain easier access to liquidity in foreign currencies.
Operational readiness
The Swiss National Bank (SNB) tests its open market operations and standing facilities using a standardised framework. The aim of this framework is to ensure the operational readiness of the SNB, market participants and infrastructure providers. In addition to the aforementioned operations, the SNB is available to its counterparties for tests in the SIX CO:RE Membertest environment.
The SNB's Money Market team is available to assist with any queries, or if you require further information, either by email or phone (moneymarket@snb.ch/ +41 58 631 77 00).
Intraday facility
During the day, the SNB provides its counterparties with interest-free liquidity (intraday facility) through repo transactions to facilitate the settlement of payment transactions.
The SNB expects its counterparties to draw liquidity in a small-value exercise with a minimum cash amount of CHF 1,000,000 on SIX Repo Ltd's trading platform (CO:RE) once a year using one of the following channels:
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either between 07.30 and 16.45 by responding to the SNB quote for the INTRADAY SNB (CH0008257112) contract on CO:RE with a Buy Order;
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or between 07.30 and 17.55 by responding to the SNB quote for the TOM INTRADAY SNB (CH0008257120) contract on CO:RE with a Buy Order.
Liquidity-shortage financing facility
As part of its standing facilities, the SNB provides its counterparties with the liquidity-shortage financing facility (LSFF) to bridge unexpected, short-term liquidity bottlenecks.
The SNB expects counterparties that have been granted an LSFF limit to draw liquidity in a small-value exercise with a minimum cash amount of CHF 50,000 on SIX Repo Ltd's trading platform (CO:RE) once a year using both of the following channels:
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between 08.00 and 18.00 via bilateral repo order using the ON SNB SPECIAL RATE (CH0008257153) contract at the applicable special rate;
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between 18.00 and 18.15 by submitting a bid during the regular daily auction.
SNB Bills
The Swiss National Bank issues SNB Bills according to the issuance calendar. To test emergency procedures, the SNB occasionally conducts additional SNB Bills auctions. The SNB encourages its counterparties to participate in these additional operations.
These auctions are included in the regular SNB Bills issuance calendar and labelled as 'small-value exercises'. As usual, the auction conditions are announced via the SNB website one day prior to the auction and, in addition, 30 minutes prior to the auction start via the electronic market information services. The SNB's main contact number for money market transactions (+41 58 631 77 00) is to be used for submitting bids. Settlement takes place via the usual channels using the SIX SIS infrastructure.
The special conditions set out in the following table apply:
| Auction dates | Thursday, 23 October 2025 and Thursday, 30 October 2025 | |||||||||||
| Auction time | 14.00-14.30 | |||||||||||
| Settlement | T+2 | |||||||||||
| Term | 7 days | |||||||||||
| Auction type | Variable rate tender | |||||||||||
| Allotment method | American | |||||||||||
| Min. bid amount | CHF 1 million | |||||||||||
| Max. bid amount | CHF 1 million | |||||||||||
| Bids per counterparty | 3 bids at different prices | |||||||||||
Further details regarding the auction procedure, the emergency procedure and the criteria for participation can be found in the instruction sheet on open market operations and the issue conditions.
CHF repo operations
The SNB conducts CHF repo auctions according to its repo auction schedule. To test emergency procedures, the SNB occasionally conducts additional CHF repo auctions. The SNB encourages its counterparties to participate in these additional operations.
These auctions are included in the regular CHF repo auction schedule and labelled as 'small-value exercises'. The auction conditions are announced as per the normal process, i.e. 30 minutes prior to the auction start via the electronic market information services. The SNB's main contact number for money market transactions (+41 58 631 77 00) is to be used for submitting bids. Settlement takes place via the usual channels using the SIX SIS infrastructure.
Further details regarding the auction procedure, the emergency procedure and the criteria for participation can be found in the instruction sheet on open market operations.