Tag Archives: Swiss National Bank

Having urged "don't panic" just 4 short months ago, it appears Nigeria just did just that as the global dollar short squeeze forces the eight-month-old government of President Muhammadu Buhari to beg The World Bank and African Development Bank for $3.5bn in emergency loans to help fund a $15bn deficit in a budget heavy on public spending amid collapsing oil revenues. Just as we warned in December, the dollar shortage has arrived, perhaps now is time to panic after all. In September,...

Well that did not last long. After initial exuberance over The BoJ's wishy-washy decision to adopt a 3-tiered rate policy including NIRP, markets have realized that without further asset purchases (which were maintained at the current pace), there is no ammo to lift stocks. An almost 200 point surge in Dow futures has been erased and Nikkei 225 has dropped 1000 points from its post BOJ highs... Dow futures have plunged... What a mess... And Nikkei has crashed over 1000 points... And...

Since 2015, the SNB provides its balance sheet items in a different form. Previously the monthly bulletins provided a history of the balance sheet. The last monthly bulletin appeared for August 2015. It contained all important data of the SNB and the Swiss economy. The balance sheet data is often 2 months or older.  The weekly monetary data and the IMF data about FX reserves and more are published a lot more quickly, but they are not that complete like the monthly bulletin. SNB...

Over four years our association of supporters of Austrian Economics from Switzerland, Germany and Austria and helpful hands from all over the world expressed opposition against the CHF cap in in-numerous pages. Finally the SNB agreed to the wishes of Swiss consumers and gave up the cap that effectively represented a tax on consumption and extra-profits for companies and close friends of the central bank. Swiss Inflation Watch: Swiss inflation  As monetarists & Austrians we expect Swiss...

Since the financial crisis central banks in developed nations increased their balance sheets. The leading one was the American Federal Reserve that increased the monetary base (M0, often called “narrow money”), followed by the Bank of Japan and recently the ECB. In most cases the extension of narrow money did neither have an effect on banks’ money supply, the so called “broad money” (M1-M3), nor on price inflation. For the Swiss, however, the rising money supply concerned both narrow and...

Swiss National Bank, the Most Relevant Pages Click here for the multi-media version of this page on the social media site Scoop It. The chapter on the SNB has the following sections (click open): Recent articles and updates: Older posts about the SNB balance sheet risks On the SNB balance sheet and sight deposits, the means of financing currency interventions: SNB Reserves vs. EUR/CHF   On SNB results and its future profitability, from 2014 and 2013 that predicted the end of the...

We regularly publish the SNB asset structure by currency, rating & duration and the investment strategy. They shall be a template for the tactical asset allocation along these dimensions for other conservative asset managers – CHF holdings certainly excluded because the SNB nearly exclusively buys foreign assets. The SNB balance sheet looks as follows: In this post we will concentrate on the assets side, investment strategy and composition of “FX reserves”.See more on liabilities...

We show the two phases or two innings or phases of Swiss franc appreciation: The “risk aversion game” and the “inflation game”. With the weakening of emerging markets and the strengthening of the United States in 2013/2014, the Swiss National Bank (SNB) had won the first battle in the war against financial market, the “risk aversion game“, the first innings in a two-part match. Risk aversion is lower because the United States recovered thanks to lower oil prices.The “inflation game”...