The Swiss Central Bank has intervened in the past week, apparently on the foreign exchange market to weaken the Swiss franc. This is the on Monday published data suggest to the sight deposits. The sight deposits of banks and Federal government at the Central Bank rose last week by 3.5 billion on 595,8 billion Swiss francs (559,3 billion euros) as the Swiss national Bank (SNB) announced. Already in the weeks prior to that, she had dressed for the part in force: to Be at the end of January they have grown by a total of about seven billion francs.
Of 1.14 in the last week of April, down to 1.06, The Euro/franc exchange rate over the last 12 months.
The development of sight deposits is considered to be an indication whether the SNB intervened in the foreign exchange market to weaken the franc against the main export currency, the Euro. The Central Bank buys Euro and credit the banks, the corresponding Swiss franc amount to the SNB account. A spokesman for the Central Bank declined to comment.
“The SNB intervenes, at present, clearly,” said Claude Maurer, an Economist at Credit Suisse. The guardian of the currency, wanted to show the markets that they are active, and a rapid appreciation of the Swiss franc to prevent. A franc-increase power of Swiss Goods abroad more expensive and the exports weaken-oriented economy of the country. To counter this, the SNB since more than five years to a record low negative interest rate of minus 0.75 per cent, and buys in addition if needed, – Euro.
The Swiss franc had climbed in the past week, the Euro to its highest level in more than four and a half years, as investors fled out of fear of the consequences of the Coronavirus spread to the global economy in droves to the “safe Harbor” applicable to the Swiss currency. The epidemic has increased, according to SNB Vice-President, Fritz Zurbrügg, the economic risks. On Monday, the Euro was worth 1,0655 francs. (cpm/reuters)
Created: 02.03.2020, 11:59 PM
