Sight deposits are currently the only means of financing for SNB currency (and maybe after the referendum for gold) purchases. The IMF-compliant weekly monetary data release on the SNB website provides the recent developments in sight deposits. Therefore the weekly monetary data gives an far earlier indication of of SNB interventions than the relatively late releases of balance sheet data.
Category Archive: SNB
Permanent link to this article: http://snbchf.com/snb/history-of-snb-sight-deposits/
In this post we give our (Swiss) view for the financial tsunami on January 15.
The SNB has preferred its secondary mandate, namely financial stability, and the elimination of risks on its own balance sheet caused by ECB QE.
It will not obey its primary target, price inflation, for the next three to five years. While in the mid-term (5 -10 years) inflation should move up.
Differing perceptions between Switzerland and the Anglophone world about “price stability in the medium and long-term” is the second explanation for the financial tsunami.
The massive trade surplus of 10% of GDP is the third reason.
Permanent link to this article: http://snbchf.com/2015/01/swiss-financial-tsunami/
Update January 25th. Effectively the SNB has intervened between 1.00 and 1.05, this means that the central bank is ready to risk its own solvability, because once again they intervene far above Friedman’s intervention level. ——————————————————————————————————————————————————- Originally written on January 15 Currency movements and fair valuation Please read the initial post on the financial tsunami, “the three …
Permanent link to this article: http://snbchf.com/2015/01/end-chf-cap-snb-intervene/
Permanent link to this article: http://snbchf.com/2015/01/dollar-euro-minimum-rate-basket-baltensperger/
Permanent link to this article: http://snbchf.com/snb/2014-results/
Since the financial crisis central banks in developed nations increased their balance sheets. The leading one was the American Federal Reserve that increased the monetary base (“narrow money”), followed by the Bank of Japan and recently the ECB. Only partially the extension of narrow money had an effect on banks’ money supply, so called “broad money”. For the Swiss, however, the rising money supply concerns both narrow and broad money. Broad money in Switzerland rises as strong as it did in Spain or Ireland before the financial crisis.
Permanent link to this article: http://snbchf.com/snb/risks-on-rising-snb-money-supply/
The Swiss National Bank has introduced negative interest rates. They apply only to sight deposits in excess of 20 times minimum reserves. Therefore they will affect hardly any bank and can be considered symbolic or even toothless. The view of the SNB is different.
Permanent link to this article: http://snbchf.com/2014/12/snb-introduces-teathless-negative-rates/
With the weakening of growth in emerging markets and the strengthening of the United States, the Swiss National Bank (SNB) has won the first battle in the war against financial markets, the “risk aversion battle”. We judge that until the second battle, the “inflation battle” starts, some time will pass, time to go for higher wages in the United States and Europe. In a historic perspective, the Swiss franc appreciated more during the inflation battles, thanks to lower inflation, as compared to the U.S. or Europe.
Permanent link to this article: http://snbchf.com/snb/snb-has-won-the-risk-aversion-battle-when-will-the-inflation-battle-start-2/
Permanent link to this article: http://snbchf.com/gold/george-dorgan-auf-finews-die-vier-fronten-bei-der-goldinitiative/
Permanent link to this article: http://snbchf.com/2014/11/euro-1-20-losses-swiss-banks/
Permanent link to this article: http://snbchf.com/chf/chf-appreciation-swiss-economy/
The ECB commitment to a weak euro and the maintenance of ultra-low interest rates, was a nice (temporary) gift for the Swiss National Bank (SNB). The bank earned nearly 12 billion francs in Q2/2014.
Permanent link to this article: http://snbchf.com/2014/07/weak-euro-nice-gift-for-snb/
Permanent link to this article: http://snbchf.com/snb/composition-reserves/
SNB First Quarter Results: 1.7% annualized Yield on Seigniorage, 2% annualized Loss on FX Rate Change
The main task of a central bank occupied with QEE (quantitative easing or exchange intervention) is to obtain higher gains on seigniorage than it loses with its “ever appreciating” currency. Otherwise its equity capital would be absorbed. In the first quarter of 2014, the Swiss National Bank (SNB) was unable to accomplish this task.
Permanent link to this article: http://snbchf.com/2014/05/snb-first-quarter-results-1-7-annualized-yield-seigniorage-2-annualized-loss-fx-rate-change/
Update March 21, 2014: Total SNB sight deposits increased to 367.8 bln. CHF, but flows reverted a bit. Foreign banks and “non-banks” reduced their CHF exposure at the SNB to 50.8 bln, possibly converting a part of the difference into USD. Dollars are more useful when sanctions will hurt both Russian and German firms. On …
Permanent link to this article: http://snbchf.com/2014/03/snb-intervening-again/
The Swiss National Bank (SNB) is reporting a loss of CHF 9.1 billion for the year 2013 (2012: profit of CHF 6.0 billion). Valuation losses on gold holdings amounting to some CHF 15.2 billion contrast with a profit of CHF 3.1 billion on foreign currency positions and a net result of CHF 3.4 billion from …
Permanent link to this article: http://snbchf.com/2014/03/2013-snb-valuation-gains-14-billion-chf-stocks-losses-35-bln-gold-fx-bonds/
Permanent link to this article: http://snbchf.com/snb/2014-q1-results-seignoriage/
Permanent link to this article: http://snbchf.com/snb/snb-profit-gold-results/
On Friday the 7th of February at 19.00, George Dorgan is presenting his outlook on the Swiss Franc. He explains if and when the Swiss National Bank is able to generate profits again. Moreover he discusses the influence of the two referendums “Save Our Swiss Gold” and “Against Mass Immigration” on the Swiss Franc and …
Permanent link to this article: http://snbchf.com/2014/02/george-dorgan-swiss-young-liberals/
Permanent link to this article: http://snbchf.com/snb/basel-iii-swiss-finish-regulatory-minimum-capital-requirements/