SNB Spent $88B On Interventions

By Unknown

Rabu, 13 Juli 2016

SNB Spent $88B On Interventions

The Swiss National Bank spent 86.1 billion francs ($ 88 billion) on interventions last year, a measure of its efforts to protect the economy from deflation.

SNB President Thomas Jordan and his colleagues have repeatedly pledged to intervene to prevent the franc strengthening. They did so even as they have given up a minimum exchange rate of 1.20 to the euro in January 2015 the grounds interventions to support were disproportionate to the economic benefit.

"The vast majority of currency purchase" was made as January, the SNB said in its annual report published Thursday. "During the rest of the year, the SNB also remained active on the market foreign exchange to influence the evolution of exchange rates, if applicable. "State

rarely pure and simple Swiss makers that they have occurred, and analysts use data on demand deposits and foreign currency reserves to assess the scope of the actions of the central bank. Breaking with the usual protocol, Jordan said in June the SNB acted to stabilize the franc amid the Greek debt crisis.

the figure in 2015 compares with 25.8 billion francs spent on interventions in 2014 and 188 billion francs in 2012. the SNB made no purchase in foreign currency in 2013 .

Bloomberg

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