Mirkov, NikolaNikolaMirkovPozdeev, IgorIgorPozdeevSöderlind, PaulPaulSöderlind2023-04-132023-04-132019https://www.alexandria.unisg.ch/handle/20.500.14171/99450We ask whether verbal interventions by the Swiss National Bank (SNB) affected market beliefs in the desired direction during the period from 2011 to 2015, when the SNB imposed a cap on the Swiss franc at 1.20 against the euro. A verbal intervention was a speech by a member of the SNB Governing Board containing the wording “utmost determination” and/or “unlimited quantities”. We show that these verbal interventions lowered forward-looking measures of uncertainty regarding the future value of euro/Swiss franc exchange rate and steered market beliefs toward franc depreciation, therefore reinforcing the credibility of the Swiss franc capenSwiss franc options FX liquidity verbal interventionsjournal article