Category Archive: 1) SNB and CHF
Gold, Bonds and Negative Interest Rates Give SNB a Q1 profit
SNB Results Q1 2016: Two thirds of SNB profit comes from Gold. Deflation helps with higher bonds prices and profit on negative interest rates.
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With Tech Tanking, Can Anything Save The System?
Submitted by John Rubino via DollarCollapse.com,
First it was the banks reporting horrendous numbers — largely, we were told, because of their exposure to recently-cratered energy companies. Now it’s Big Tech, which is a much harder thing t...
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Wall Street and SNB In Pain: 163 Hedge Funds Are Long AAPL Stock
First it was the blow up of hedge fund darling Valeant that crushed countless funds who were long the name.
Then, one month ago after the collapse of the Allergan-Pfizer deal, we showed (one of the reasons) why the hedge fund world continued to unde...
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April 2016: SNB running suicide again?
Speculative position: Speculators are even longer CHF (against USD): +9410x 125K contracts.
Sight Deposits: SNB intervenes for 6.4 bln. CHF in only three weeks. Sight deposits (aka debt) are rising by nearly 1% per month, this is 10% per year. The SNB can never achieve such a yield on investment, her yield is between 1 and 2 percent. Is the bank running suicide again?
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Big Players (Read: Governments) Make Markets Unsafe
Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke.
Reportage in The Wall Street Journal on April 4th states that “A fund owned by China’s foreign-exchange regulator has been taking stakes in some of the co...
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March 2016: Highest SNB Interventions since January 2015
Speculative position: Strong shift to CHF long: +4967x 125K contracts after the Fed reduced their expectations of rate hikes for this year. …………Sight Deposits: SNB intervenes for 6.1 bln. CHF during the month of March. This is the higest level since January 2016. ……….FX: EUR/CHF steady slightly over 1.09. As I expected last week, the EUR/CHF …
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Investment policy in times of high foreign exchange reserves
The Money Market Event is the biggest feast of the Swiss National Bank and a selected list of money managers that work together with the central bank. It is initiated by important speeches and ended with a generous buffet dinner. In the first speech, Andrea Mächler addressed three points:
The expansion of the SNB balances sheet as measure against the so-called "strong franc" in a historic perspective.
How the SNB takes over currency risks from...
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The SNB and the Forex Rigging Irony
While Forex banks, traders, and other institutions are being blamed for market rigging, the Swiss National Bank can publish reports about its own market rigging, but instead of being a scandal, it's economic data. That's because the vast majority do...
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Swiss National Bank Admits It Spent $470 Billion On Currency Manipulation Since 2010
By now it is common knowledge that when it comes to massive, taxpayer-backed hedge funds, few are quite as big as the Swiss National Bank, whose roughly $100 billion in equity holdings have been extensively profiled on these pages, including its woef...
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How Venezuela Exported 12.5 Tonnes Of Gold To Switzerland On March 8
Submitted by Ronan Manly of Bullionstar Blogs
Following on from last month in which BullionStar’s Koos Jansen broke the news that Venezuela had sent almost 36 tonnes of its gold reserves to Switzerland at the beginning of the year, “Venezuela Exporte...
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SNB Monetary Policy Assessment and Critique
We examine the SNB monetary assessment statement of March 17 and the Swiss economy. We explain why negative rates may be a "toothless measure" if a central bank wants to weaken a currency. They have rather an inexpected consequence, they slow down GDP growth, in particular for banks and pension funds.
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Another Fed “Policy Error”? Dollar And Yields Tumble, Stocks Slide, Gold Jumps
Yesterday when summarizing the Fed's action we said that in its latest dovish announcement which has sent the USD to a five month low, the Fed clearly sided with China which desperately wants a weaker dollar to which it is pegged (reflected promptly ...
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Central Bank Independence in Switzerland: A Farce
articles by Marc Meyer, one of the most critical voices against the SNB.
This post explains
--- That the SNB does not understand what assets and liabilities are - and therefore - it speculates with massive leverage.
--- The difference between good and bad deflation
--- Both the SNB and the Swiss government do what some Swiss exporters want. Therefore, the formerly admired central bank independence in Switzerland has become a farce.
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Swiss National Bank Results 2015 and Comments
The Swiss National Bank (SNB) is reporting a loss of CHF 23.3 billion for the year 2015 (2014: profit of CHF 38.3 billion). The loss on foreign currency positions amounted to CHF 19.9 billion. A valuation loss of CHF 4.2 billion was recorded on gold holdings. The profit on Swiss franc positions was CHF 1.2 billion.
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SNB Reduced Loss from 50 Billion in June to 23 Billion
According to the latest news release, the Swiss National Bank expects an annual loss of 23 billion CHF, after reporting a loss of 50 billion at the end of June. Primarily thanks to the stronger dollar, the SNB was able to achieve unrealized gains of 27 billion CHF in the second half. This reduced her annual loss to 23 billion. With its rate hike, Fed is helping the SNB: the dollar has appreciated by 6% since July.
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Swiss GDP and Swiss Franc Shock Propaganda
For George Dorgan the "Swiss Franc Shock" celebrated by the Swiss press did not affect the Net Exports component of Swiss GDP, but it rather suppressed growth in consumption. Therefore the Swiss economy could not replace lost export jobs by new jobs in the internal economy.
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Central Banks Shiny New Tool: Cash-Escape-Inhibitors
Submitted by JP Koning via Moneyness blog,
Negative interests rates are the shiny new thing that everyone wants to talk about. I hate to ruin a good plot line, but they're actually kind of boring; just conventional monetary policy except in negative ...
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Are Central Banks Setting Each Other Up?
Authored by Mark St.Cyr,
There are times you try to connect the dots. There are others where those connections warrant adorning your trusted tin-foiled cap of choice; for you just can’t get there unless you do. This I believe is one of those time...
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