On the eve of the euro's launch as legal tender, Jean-Pierre Roth discusses the experience gained with the currency in the first three years of its existence and the expectations for the future from the vantage point of a central bank outside the euro area. Three years ago, many analysts feared either a high volatility of the Swiss franc/euro rate or the disappearance of the interest differential between the euro area and Switzerland. Neither of these fears has been corroborated.

Mr Roth explains the SNB's monetary policy concept and the role played in this by the exchange rate. He also discusses how the euro affects the Swiss franc on both the national and the international level. All in all, past experience seems to show that the SNB will continue to be in a position to conduct an independent monetary policy oriented to the needs of Switzerland.