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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Category Archive: 1.) SNB, George Dorgan’s opinion
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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Target2 Balances and SNB Currency Reserves. They are Both the Same Concept
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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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained
Potential losses due to money printing are for the Fed: 1.2% of GDP, Bundesbank: 5% of GDP, SNB: 12% of GDP.
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Why the SNB will not Imitate Hong Kong, but Potentially Singapore
The SNB will not be able to realize a fixed currency peg over the long-term. The consequence would be that Switzerland loses its competitive advantage, lower Swiss rates, if it follow euro inflation.
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JP Morgan: Reflections on negative interest rates in Switzerland
Negative interest rates naturally attract attention given Switzerland’s use of these between 1972-1978.
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