Thomas Jordan, Chairman of the Swiss National Bank (SNB), has announced his early departure in September, three years ahead of schedule. His tenure has been marked by navigating crises such as Credit Suisse’s collapse and managing a surging Swiss franc. Jordan, who joined the SNB in 1997 and became chairman in 2012, believes it is the right time to step aside after overseeing one of the most tumultuous periods in the central bank’s 117-year history.
Jordan reflects on his tenure, highlighting the absence of quiet periods since he joined the SNB’s board in 2007. From one crisis to another, he has steered the central bank through turbulent waters, despite facing criticism for the SNB’s handling of Credit Suisse’s downfall.
Navigating Criticism and Calls for Change
Critics have called for governance reforms within the SNB, questioning the concentration of power under Jordan’s leadership and the lack of gender diversity in senior positions. While potential successors are being considered, including Jordan’s deputy Martin Schlegel and former governing board member Andrea Maechler, Jordan refrains from commenting on the gender issue.
Despite undergoing heart surgery in 2021, Jordan asserts that his health did not influence his decision to step down. He remains committed to his responsibilities until his departure in September, with no concrete plans for the future.
Market Reaction and Legacy
The announcement of Jordan’s early departure sees a slight easing of the Swiss franc against the euro. Economists acknowledge Jordan’s tenure as successful, characterized by tough decisions such as the abandonment of the minimum exchange rate against the euro in 2015 and the implementation of negative interest rates to curb the Swiss franc’s appreciation.
Continuity in Monetary Policy
Jordan’s departure raises questions about the future direction of the SNB. However, economists believe that the central bank’s approach is likely to remain consistent, given Jordan’s significant influence and success in implementing monetary policy, including the shift from ultra-loose policies to rate hikes in 2022.
Barbara Janom Steiner, President of the SNB Bank Council, expresses regret over Jordan’s decision to leave, recognizing his influential role in shaping the SNB’s monetary policy over the past 25 years.
As Thomas Jordan prepares to step down from his role as Chairman of the Swiss National Bank, his departure marks the end of an era characterised by crises, tough decisions, and successful monetary policy implementation. While his successor is yet to be named, Jordan leaves behind a legacy of stability and resilience amidst challenges, shaping the course of Switzerland’s monetary policy for over a decade.
