Thomas Jordan reflects on his tenure at Swiss National Bank as his departure nears

Outgoing Swiss National Bank President Thomas Jordan, who has been leading the institution for 12 years, wears a reputation for stability and doesn’t have a problem if his tenure is viewed as dull in some quarters, given that he simply did what was right for Switzerland.

In an interview with Bieler Tagblatt published Saturday, Jordan said, “It’s better to be called boring or stubborn than to be told that I’m pursuing the wrong monetary policy.” He underlined that the SNB had accepted challenges at all times and taken the appropriate decisions during his presidency.

Jordan cited the 2008 financial crisis, the UK’s departure from the European Union and the Covid pandemic, which he said the Swiss economy handled well. “Especially when we compare ourselves with our European environment, Switzerland has come through these difficult years very well,” he said.

While Jordan's presidency can be characterised as relatively uneventful, it had its share of dramatic moments. Most notably, his decision to scrap the SNB’s currency cap in 2015 without notice, sent a shockwave through markets. He has, however, defended that move and nearly eight years of negative interest rates as necessary and successful measures, given haven flows into the Swiss currency. Since his presidency began in 2012, the SNB “prevented deflation several times,” he said.

Jordan also ruled out the introduction of a new minimum exchange rate. The 61-year-old president added there was unlikely to be a future for him in political office when he leaves the central bank at the end of September. "I don't think so", he said, when asked about the prospect. "As president of the SNB, I already had a public role."

The tenure of Thomas Jordan at the SNB was marked by a number of strategic decisions that helped Switzerland sail through various economic challenges. His cautious yet decisive leadership has left an eternal mark on the institution, quite assuredly, for the stability of the system in the times of uncertainty.