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Category Archive: 1) SNB and CHF

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SNB Reserves Rise by 8 bln. CHF Thanks to Stronger USD, GBP, CAD and some FX Purchases

2013-04-05

by George Dorgan

2013-04-05

In March 2013, the foreign currency reserves of the Swiss National Bank (SNB) rose by 8 bln. CHF from 437 bln. to 445 bln. mostly thanks to valuation gains on US dollar, sterling and Canadian dollar. full details

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IMF (2013): Sees Considerable Risks on SNB Balance Sheet

The International Monetary Fund (IMF) judges "that the SNB’s net revenue is subject to large fluctuations, and sizeable losses could occur if an appreciation of the Swiss franc was to take place before foreign exchange interventions were unwound."

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SNB Monetary Assessment March 2013

2013-03-14

by George Dorgan

2013-03-14

In its monetary assessment the SNB maintains the EUR/CHF floor and warned against further risks in the euro zone. The SNB has downgraded the inflation path to -0.2% (previously-0.1%) in 2013 and +0.2% (+0.4%) in 2014.We do not completely agree.

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Composition of SNB Reserves Q4, 2012, Yield on Investment

2013-03-07

by George Dorgan

2013-03-07

We regularly publish the SNB asset structure by currency, rating & duration, they might be a template for the tactical asset allocation in these dimensions (CHF certainly excluded) for other fixed income asset managers. Moreover we publish the yield on investment. Composition of SNB Forex Reserves, Q4 2012 The Swiss National Bank (SNB) saw …

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What Ernst Baltensperger Got Wrong: Why SNB FX Losses Might Not Be Recovered By Income on Reserves

Opposed to Ernst Baltensperger, we think that the risk of losses on the SNB balance sheet and of an asset price bubble might be more important than the dangers of upcoming Swiss inflation.

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SNB Liabilities (deposits & bank notes) at New Record High

2013-02-25

by George Dorgan

2013-02-25

SNB sight deposits are rising again, by 700 million CHF in one week. But the amount of cash in form of bank notes and coins has risen by 10% since September. It seems that the central bank is now not only virtually printing (via sight deposits) but also physically. SNB liabilities reached a new record high. Details

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SNB Remains the Only Central Bank Currency Warrior: The Japanese do not Fight, they Talk

Central Bank data show that the Swiss National Bank (SNB) remains the only central bank that strongly participated in currency wars with FX intervention, while the Japan was just verbal intervention.

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What QE means for the world: Positive-sum currency wars

2013-02-15

by The Economist

2013-02-15

Brazil’s finance minister coined the term “currency wars” in 2010 to describe how the Federal Reserve’s quantitative easing was pushing up other countries’ currencies. Headline writers and policy makers have resurrected the phrase to describe the Japanese government and central bank’s pursuit of a much more aggressive monetary policy, motivated in part by the strength of the yen.The clear implication of the term “war” is that these policies are...

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The “Get Stress in May and Relax in October Effect” for the SNB

The U.S. economy regularly improves between October and March. The SNB should use the moment to sell some currency reserves. From May on, the typical seasonal effects will push the SNB into a defense.

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Target2 Balances and SNB Currency Reserves. They are Both the Same Concept

target2 balances vs. snb reserves germany spain greece austria finland italy

We show that Target2 imbalances and the SNB currency reserves represent the same issues, namely current account surpluses/deficits and capital flight. Therefore it makes sense to compare them, in total and by inhabitant.

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Franc-ly we’re delighted, said the SNB

2013-01-17

by David Keohane

2013-01-17

Here’s the Swiss franc at its weakest level against the euro since the Swiss National Bank put its cap into place in September 2011: The euro hit SFr1.2485 on Thursday, up 3.3 per cent since the 10th of January and back to levels not seen since May 2...

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SNB Profit 6 Billion CHF over the Year, 10.9 Billion Loss in Q4/2012

2013-01-17

by George Dorgan

2013-01-17

The Swiss National Bank (SNB) obtained a profit of around 6 billion francs for the year 2012 (full statement). The profit was reduced from 16.9 billion francs between Q1 and Q3 2012, which means that in Q4/2012 the bank had a loss of around 10.9 billion francs. The profit in gold fell from 6.2 billion …

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The wonders of the FX universe

2013-01-11

by Izabella Kaminska

2013-01-11

Dark matter may more commonly be associated with physics, space exploration and Professor Brian Cox, but, according to Deutsche Bank’s FX strategist George Saravelos, there’s a good chance that it’s becoming a recognisable force in the world of forei...

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Yearly Swiss Doomsaying and Swissmem’s Control over the Swiss National Bank

2013-01-11

by George Dorgan

2013-01-11

The same as every year in December/January: Swiss media and economists are doomsaying. This time they claim that the banking industry and the UBS job losses will bring Switzerland into trouble. Once again they do not understand that the Great Recession was only to a small part a banking crisis, but it was mostly a … Continue reading »

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