Category Archive: 1.) English Posts on SNB

Private markets, public investors: The march of the sovereigns

SOVEREIGN wealth funds, typically set up by oil-exporting nations, have been around for decades, in the case of Kuwait since 1953. But their influence has increased in recent years, as China has adopted a similar strategy for investing some of its vast foreign-exchange reserves while existing funds have been fuelled by gains from high oil prices.

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Buttonwood: Land of the falling yield

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15 Billion SNB Losses on Gold in 2013, But 40 Billion SNB Profit on Gold between 2000 and 2012

For anybody complaining about gold that caused the big loss of the Swiss National Bank. Since 2000, the total SNB profit was 32.1 bln. CHF, of which 24.6 billion came from gold.

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

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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Letters: On Mitt Romney, India, Switzerland, common law, "The Iron Lady", executive pay, theme parks, walking, the Olympics

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The Swiss National Bank: Damage control

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Business this week

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Swiss central bank chief quits: Exit Hildebrand

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A Swiss central-banking scandal: Called to account

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Business this week

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A Swiss central-banking scandal: Called to account

IT IS starting to look like a sustained attack. On January 4th an article in Die Weltwoche, a Swiss weekly magazine, accused Philipp Hildebrand, president of the Swiss National Bank (SNB), of personal currency speculation while the SNB was intervening to stabilise the Swiss franc/US dollar rate.

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Expectations: Jedi monetary policy

On Tuesday, the Swiss National Bank (SNB) adopted a bold policy of pledging to sell Swiss Francs in an unlimited amount to ensure that the exchange rate viz-a-viz the euro is at least 1.2 Swiss Francs per euro. The exchange rate promptly jumped over 8 percent to a bit more than 1.2 Swiss Francs per euro. The SNB can clearly weaken its currency in this way, so long as its commitment is unwavering.

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Exchange-rate targets: Francly wrong

WHEN the going gets tough, the tough buy Swiss francs. That was true in the 1970s, when the Swiss were forced to impose negative interest rates on foreign depositors. And it has been true in recent years, with Switzerland's currency rising by 43% against the euro between the start of 2010 and mid-August this year.

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Currency interventions: Francs for nothing

CENTRAL banks have historically been regarded as the guardians of a currency's value, but occasionally they want to drive their exchange rates down. Rarely have they acted as aggressively as the Swiss National Bank (SNB) did on September 6th.

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