Category Archive: 1) SNB and CHF

SNB Balance Sheet Expansion

Since 2008 the balance sheet of the Swiss National Bank is 280% higher, this is the equivalent of 60% of Swiss GDP. So did most other central banks, too. But there is one big difference: The risk for the SNB is far higher, the SNB nearly exclusively possesses assets denominated in volatile foreign currency.

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History of SNB Sight Deposits, 2013



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2013 Posts on SNB

Blog entries on the SNB that got last updated in 2014

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2013 Posts on CHF

Blog pages last updated in the year 2014 on the Swiss Franc.

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Swiss National Bank Monetary Policy Mandate – 2007 version vs. today

The mandate of the Swiss National Bank is concentrated on price stability, i.e. less than 2% inflation and to avoid deflation.

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Written in Dec 2013: FX trade of the Future is EUR/CHF Short, Not EUR/CHF Long



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ECB rate cut creates complex situation for SNB

Says Thomas Jordan. Need to wait to assess impact of ECB rate cut Wasn’t totally surprised by the cut Interest rates will remain low in Switzerland Low rates may lead to property bubble risk which SNB will respond to if necessary SNB monitoring property market which is already in difficult situation I did wonder about the lack of movement in EUR/CHF yesterday considering that nearly every other euro pair took a hit. It’s either become the...

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Weekly Newspaper on Swiss National Bank and Swiss Franc

  Feel free to click into the other categories “politics”, “business”, #chf, #snb in order to see more articles.

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Fast CHF and Gold Price Movements

Our CHF and Gold News Bar on our home page explains daily CHF and gold price movements based on the most important fundamental indicators in a few sentences. Keep in mind that the only Swiss fundamental data that is able to move the CHF must come from the SNB and from Swiss inflation data – … Continue reading »

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In Which Positions Does the SNB Win and Where Does it Lose Money: Details on the Q3 Results

UPDATE October 31, The official press release focused on the results for Q1 to Q3. The loss was 6.4 billion after a 7.3 bln. CHF loss in the first two quarters. Over all three quarters especially gold and the yen weakened the central bank’s positions. For the third quarter, it means that income was positive … Continue reading »

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Weekly Newspaper on Swiss National Bank, Edition October 28

The SNB recently published the latest real effective exchange rate (REER). According to that the franc was only 7% overvalued against the base year 1999. Credit Suisse (CS) has taken some more factors than the REER under consideration: for them the fair value of the EUR/CHF is now 1.22, while the dollar was still undervalued. …

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SNB’s Jordan Responds to the Critique from the Peterson Institute: What They Forgot to Ask Him …

SNB's Jordan Responds to the Critique from the Peterson Institute: What They Forgot to Ask...

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No SNB Intervention: Massive Swiss M0 Increase due to Post Finance Transformation into a Bank

SNB did not intervene. Deposits of Swiss Post Finance had been reclassified from other sight liabilities to deposits of domestic banks.

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Danthine: SNB would end franc cap once it raises interest rates

It was obvious already at the latest SNB Monetary Policy Assessment, the SNB is becoming more and more hawkish. At the forefront is its ueber-hawk Jean-Pierre Danthine, the person responsible for the overheating Swiss housing market. He has now announced: SNB would end franc limit once it raises interest rates The Swiss National Bank will …

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Jordan 1999 paper: Why Switzerland should never peg to the Euro



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SNB Q2/2013 Composition of Reserves

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 and/or rather conservative asset managers. here the newest data Total Balance Sheet and Liabilities The total balance sheet size decreased from 511 bln. …

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Debt Reduction, the new Financial Cycle, an Important Driver of EUR/CHF

In this analysis we describe why the long-lasting financial cycle of debt reduction is one key driver of the EUR/CHF exchange rate. We claim that EUR/CHF can rise more strongly only when the competitiveness of the European periphery increases. When this happens, then debt will be reduced and both public and private deficit spending will stop.

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A Nationalization of Swiss Foreign Assets? SNB Owns 56% of Swiss Net International Investment Position

The SNB currently owns 56% of the Swiss net international investment position (“NIIP”). In the year 2007 this number was only 12%. Is the central bank implicitly nationalizing the Swiss international companies?

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Our Detailed Estimate of SNB Q2 Results: 17 Billion Francs Loss, The Reality 18 Billion

UPDATE: July 30th, 2013: Our estimate for the quarterly loss missed the reality by 1 billion francs. The quarter results: 18.3 billion francs loss. The loss for H1 was 7.3 billion CHF. July 1st 2013: We estimate that the Swiss National Bank (SNB) obtained a loss of 17.3 billion francs in the second quarter 2013. … Continue reading »

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Why the SNB will not Imitate Hong Kong, but Potentially Singapore



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