A sufficient supply of liquidity for the economy, a stable currency and smoothly functioning financial markets are of crucial importance to every national economy. Moreover, for a small open economy with few natural resources like Switzerland, which is exposed to international competition, a stable international monetary system is especially important.
Monetary policy is the responsibility of the SNB. The Federal Department of Finance (FDF) deals with questions concerning the SNB's governance and legal basis.
The FDF and the SNB establish an agreement on the amount of the annual profit distribution by the SNB to the Confederation and the cantons. For the FDF, the FFA is responsible for this agreement.
The Federal Act on Currency and Payment Instruments (CPIA) stipulates the Swiss currency to be the franc. Legal tender – i.e. payment instruments by which monetary debts may be settled with legal effect – are, according to that law, banknotes, coins, and sight deposits at the Swiss National Bank.