Tag Archive: balance of payments

Julius Bär’s Acket Talking Nonsense: Too Much Transparency on SNB Sight Deposits?

Julius Baer's Chief Economist Janwillem Acket argues that by publishing weekly sight deposits, the SNB is telling the market too much. George Dorgan responds that this hiding of economic data will need to happen also in trade data, in GDP data and even in the disclosure of Swiss company results. For Adam Button, this contradicts the people's desire of transparency.

Read More »

Ex-Post FX Evaluation: Is the Swiss Capital Account Able to Neutralise the Persistent Current Account Surpluses?

(post written originally in March 2013) We reckon that the Swiss National Bank (SNB) will have issues maintaining the EUR/CHF floor in the longer term, because the expected yields on Swiss investments abroad will not be sufficiently higher than the yield on investments in Switzerland. Because of this insufficient risk-reward relationship, outflows in the capital account of the Swiss balance of payments will not cover the persistent Swiss current...

Read More »

(1) What Determines FX Rates?

The effects of so-called “currency wars” and other central bank actions are small compared to the long-term impact made by these five catalysts, which include credit cycles, trade balance, differences in economic growth, and more.

Read More »

(5) The Balance of Payments Model

The Balance of Payments is the sum of current and capital account. The Balance of Payments model states that a currency appreciate when the Balance of Payments is positive. We give an explanation in around 400 words, that clarifies the relationships.

Read More »

(6.1) FX Theory: The relationship between Current Accounts Surpluses and the Carry Trade

The EUR/USD is going on its longest winning streak for a long time. Since May 27, it has improved from 1.2850 to 1.3396 and is approaching 1.34. What are the reasons?

Read More »

T. Jordan: Strong Swiss franc and large current account surplus – a contradiction?



Read More »

Balance of Payments Crisis: Did the Fed Cause the Euro Crisis with Excessive Monetary Easing?

The Fed's excessive monetary easing QE2 caused an inflationary period, that created a balance of payments crisis during which the Eurozone members were obliged to introduce excessive austerity measures.

Read More »

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.

Read More »

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.

Read More »

The wonders of the FX universe

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...

Read More »

Because They Knew What They Were Doing: The Parallels between European and SNB Leaders

Similarly as European leaders knew what they were doing with the euro, namely introducing a not feasible currency, Swiss National Bank did between 2005 and 2008, namely the absolutely wrong thing.

Read More »

4 Different Solutions for the Euro Crisis: Can it Be the Northern Euro? A Discussion

The discussion about the future of the Euro: Among a Post-Keynesian, a European Etatist, an Austrian economist and an advocate of a Northern Euro on the French website www.atlantico.fr. The French paper is asking: “Sommet européen : créer un euro du Nord est-il le seul moyen de sauver l’Europe de l’austérité ?” Is the creation of …

Read More »

IMF Data: SNB Forex Reserves and Gold in September 2012

This link  on the SNB website shows the data the central bank provides to the International Monetary Fund (IMF). It shows the SNB Forex and gold reserves in the last month. It is so-called “IMF Special Data Dissemination Standard (SNB Data)” It is released together with the international investment position, some monetary aggregates and the balance of payments two weeks after …

Read More »

EUR/CHF, A History, Market Betting on Floor: March 2012

Nomura Touts EUR/CHF Longs Strategists there advise going long around the current levels, they say the floor will not break. They target 1.24. I have to agree. To me, it’s a question of buying low or buying a bit lower. By Adam Button  || March 30, 2012 at 14:50 GMT EUR/CHF Touches One-Month Low Bounced off … Continue reading »

Read More »

SNB Statistical Publications



Read More »
Page 112