Tag Archive: Capital Controls

Cyprus, the Final Compromise: The Winners and the Losers

2013-03-25

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2013-03-25

Laiki Bank
 UPDATE March 25 The final compromise: via Reuters TOP NEWS Detail of EU/IMF bailout agreement with Cyprus Sun, Mar 24 22:19 PM EDT BRUSSELS (Reuters) – Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy …

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ZKB may introduce negative interest rates for ordinary savers

2013-01-11

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2013-01-11

ZKB negative interest rate
After UBS and CS introduced negative interest rates for big clearing accounts, ZKB changes general conditions for a potential introduction of negative rates even for ordinary savers. Time to get in contact with Geneva cash storing warehouses? More about the ZKB move on

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Credit Suisse and UBS Will Charge Negative Interests Above a Threshold

2012-12-03

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2012-12-03

Credit Suisse and UBS will charge negative interests for cash clearing clients above a threshold. Last year such was worth 150 bps, this year on 28 bps.  See the official news at FT Alphaville

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Gold, CHF, Brent Arbitrage Trading after Negative CS, UBS Interest Rates

2012-12-01

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2012-12-01

gold price usd/chf 1972 2012
  Credit Suisse and UBS will charge negative interests for cash clearing clients above a threshold. Last year such news was worth 250 bps, on December 3 only 28 bips. One remembers August 26, 2011, when UBS only spoke of negative interests and consequently EUR/CHF rose from 1.1420 to 1.1688. At the time FX traders …

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How former central bankers stepped up against the central banks

Central Bankers against Central Bankers Banned Weber Stark Issing
There are already three former European central bankers who criticize more or less openly the European Central Bank (ECB).

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Steen Jakobsen, Chief Economist Saxo Bank is buying in our arguments

2012-06-12

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2012-06-12

Steen2
Steen Jakobsen sees 25% percent chance that the floor breaks and if it does it breaks to parity. Last week Thomas Jordan removed any hopes on a hike of the EUR/CHF and invited smart money and hedge funds to a no-risk, high return game on the Swiss franc, which these gratefully accepted. After Morgan Stanley …

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The Swiss National Bank and the EUR/CHF floor have become a political football

2012-06-10

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2012-06-10

Adsense inside posts
  How the SNB Chairman Jordan has invited hedge funds and smart investors to a risk-free, high-return guaranteed investment in Swiss francs A wrap-up of Swiss newspapers for non-German literates In parallel to the start of the UEFA Euro 2012, the Swiss National Bank and its policy towards the EUR/CHF exchange rate has become a political …

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A central bank running suicide ? SNB prints at pace never seen since EUR/CHF parity in August 2011

2012-06-04

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2012-06-04

Printing PressClick
  The most recent money supply data from the Swiss National Bank (SNB) has shown increases of huge amounts. As compared with its loss of 19 bln. francs in 2010 (3% percent of the Swiss GDP), the central bank printed tremendous 17.3 bln. in the week ending in June 1st and 13 bln. in the one …

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CNBC rumors: Different peg methods for the SNB

2012-05-30

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2012-05-30

Crawling peg RSD
There are currently rumors going on on CNBC that the SNB is planning something this night. As we explained here, the SNB had to strongly restart the printing press and printed tremendous 13 bln francs in one week. Moreover, they probably sold some of their in Q4 2011 and Q1 2012 acquired GBP, JYP and …

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Huge rise in Currency Reserves: The SNB has restarted the printing press

2012-05-29

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2012-05-29

Euro Trash Recycled
The game for the Swiss National Bank seems to have changed completely. Again the central bank had increase money supply, as measured by deposits at the SNB by local banks and other sight deposits, this time even by 13219 mil. francs (source). This money printing implies that the SNB had to buy in Euros in …

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SNB’s Jordan admits that EUR/CHF floor will not be raised

2012-05-27

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2012-05-27

SNB Chairman Jordan speaks to media during a news conference in Bern
For the first time the chairman of the Swiss National Bank Jordan has admitted that the EUR/CHF floor of 1.20 will not be raised. In an interview with the Swiss Sonntagszeitung, here also cited by Bloomberg, he said:

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Rumors about tax on Swiss deposits for foreigners and further SNB measures: SNB begging for pips

2012-05-24

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2012-05-24

capital controls
Exactly when the US had a relatively good Markit Flash PMI, rumors are sent out that deposits in CHF for foreigners should be taxed.  To send out this rumor together with good US data seems to be intentional. According to Banque CIC the SNB has declined to comment. We remember the last SNB meeting when similar rumors circulated.

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Former SNB chief economist: Capital controls are just empty words

2012-05-20

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2012-05-20

capital controls
A former SNB chief economist says that capital controls are impossible, just empty words. In case of a Euro break-up the Swissie must rise together with USD, GBP and JPY  An article, surprisingly from the usually left-wing Tagesanzeiger, more or less closely translated with some additional remarks.

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Has the Swiss Franc Reached its Limit? (February 2011)

2011-02-06

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2011-02-06

chf-usd 1 year chart 2010-2011
Feb. 6th 2011 Extracts from the history of the Swiss franc (February 2011) The second half of 2010 witnessed a 20% rise in the Swiss Franc (against the US Dollar), which experienced an upswing more closely associated with equities than with currencies. It has managed to entrench itself well above parity with the Dollar, and …

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Capital controls: The poison cupboard of the SNB

2010-10-14

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2010-10-14

The SNB has already tried a lot to weaken the franc. A (google) translation of a list of capital controls of the Never Mind the Markets blog.   The fear of the economic effects Brake by an overvalued franc increases. Massive interventions by the Swiss National Bank (SNB) with € purchases are now ineffective fizzles. Does it …

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JP Morgan: Reflections on negative interest rates in Switzerland

chf appreciated despite, snb abopts fx target nominal real
Negative interest rates naturally attract attention given Switzerland’s use of these between 1972-1978.

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