Tag Archive: FX reserves

FX Daily, November 07: Dollar Stabilizing After Bounce

2016-11-07

FX Performance, November 07 2016 Movers and Shakers

The DAX also gapped lower before the weekend and gapped higher today. It is stalling just ahead of the earlier gap from last week (10460-10508). It is up about 1.6% in late-morning turnover. The strongest sector is the financials, up 2.5%, with the banks up 3.4%. Deutsche Bank is snapping a five-session drop. It fell 9.1% last week. It has recouped more than half of that today.

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Swiss National Bank: Composition of Reserves (Assets) and Investment Strategy

The Q1/2016 update on the SNB investment strategy and its assets. The Swiss National Bank is a passive conservative investor. As opposed to other investors, the exposure in currencies is as important as the strategic asset allocation according asset classes (bonds, equities, cash, real estate). The importance of currencies is one reason why the SNB is often called a hedge fund, the second the volatility of gains and losses.

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Rising Sight Deposits at SNB Means Rising SNB Debt

Money creation and sight deposits may have two points of view: 1. The central bank creates money - i.e. the SNB decides to increase sight deposits when it does currency interventions 2. Commercial banks create money - inflows in CHF on Swiss bank accounts make those banks increase their "sight deposits at the SNB. If inflows in CHF are higher than outflows then CHF must rise, unless the central bank does currency interventions. We will present...

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The Collapse of the Bretton Woods System, the German Current Account and Gold Reserves

Gold and FX Reserves US, Germany, Switzerland, UK, Japan 1950-1970 vs. German Gold

German, Swiss and Japanese gold reserves rose continously in the Bretton Woods system, whereas American and British reserves fell.

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SNB Q2/2013 Composition of Reserves

2013-08-02

by George Dorgan

2013-08-02

We regularly publish the SNB asset structure by currency, rating & duration, they might be a template for the tactical asset allocation in these dimensions (CHF certainly excluded) for other fixed income and/or rather conservative asset managers. here the newest data Total Balance Sheet and Liabilities The total balance sheet size decreased from 511 bln. …

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SNB Q1 Results: Bottom-Fishing Cheap Yen, Increases Equity Share with Gains and Margin Debt

2013-04-30

by George Dorgan

2013-04-30

We regularly publish the SNB asset structure by currency, rating & duration, they might be a template for the tactical asset allocation in these dimensions (CHF certainly excluded) for other fixed income and/or rather conservative asset managers. Composition of SNB Forex Reserves, Q1/2013 With the strong results of 11.2 billion francs, the SNB reduced the …

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Composition of SNB Reserves Q4, 2012, Yield on Investment

2013-03-07

by George Dorgan

2013-03-07

We regularly publish the SNB asset structure by currency, rating & duration, they might be a template for the tactical asset allocation in these dimensions (CHF certainly excluded) for other fixed income asset managers. Moreover we publish the yield on investment. Composition of SNB Forex Reserves, Q4 2012 The Swiss National Bank (SNB) saw …

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SNB Profit 6 Billion CHF over the Year, 10.9 Billion Loss in Q4/2012

2013-01-17

by George Dorgan

2013-01-17

The Swiss National Bank (SNB) obtained a profit of around 6 billion francs for the year 2012 (full statement). The profit was reduced from 16.9 billion francs between Q1 and Q3 2012, which means that in Q4/2012 the bank had a loss of around 10.9 billion francs. The profit in gold fell from 6.2 billion …

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FX Theory: The Balance of Payments Model Explained in 400 Words

2012-12-30

by George Dorgan

2012-12-30

The balance of payments leads to many confusions because definitions vary. For example, the IMF’s definition is different from the usual or historical definition. Secondly, the relationship between the balance of payments and reserve assets is difficult to grasp, especially in the IMF definition. Thirdly the origin of “errors and omissions” is often unclear. Therefore …

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Correlations Between the Swiss Franc, Gold and the German Economy

2012-12-21

by George Dorgan

2012-12-21

In yesterday’s post we focused on several economic events that weakened the position of the Swiss National Bank (SNB). In this extended replacement post, we give several reasons for recent movements in the gold price and explain the correlation between German economic data, gold and the Swiss franc. IFO data shows that Germany will not …

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SNB Losses: 1.85 Billion Francs in Just One Day, 231 Francs, 250$ per Inhabitant

2012-12-18

by George Dorgan

2012-12-18

After the disappointing US current account data, traders have realized which countries have strong trade balances, namely Germany and Switzerland (see here for our details on the ever rising Swiss trade surplus), additionally fueled the good German IFO data. Both the euro and the Swissie strongly rose against the dollar. Due to Abe’s pressure on the …

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Trade Like a Central Bank: Buy EUR/USD at 1.24 and sell at 1.30! .. SNB

2012-10-31

by George Dorgan

2012-10-31

Composition of SNB Forex Reserves, Q3 2012 The Swiss National Bank (SNB) reduced the share of euros in the third quarter substantially from 60% in Q2 to 48% in Q3 and increased dollar and pound positions. The SNB bought 80 billion euros or more when the common currency was trading around 1.24$, especially at the end of …

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