Swiss central bank continued currency sell-off in third quarter
The Swiss National Bank (SNB) accelerated its selling off of foreign currency holdings in the third quarter of 2022, continuing its new course after years of big purchases.
This content was published on
2 minutes
Keystone-SDA/dos
From July to September, the central bank sold off CHF739 million of foreign currency reserves, according to data published on Friday. In the second quarter of the year, it had already begun the policy reversal, but with a modest offload of CHF5 million.
The selling off comes after years of buying foreign currencies in an effort to weaken what the SNB viewed as an “over-valued” Swiss franc. Dampening the value of the currency would help the domestic economy and exporters, it argued.
As a result, since 2015 (when the franc was unpegged from the euro), a total of around CHF350 billion in foreign currencies was purchased, with a notable high point of CHF110 billion in 2020, the first coronavirus year.
More
More
The strong Swiss franc – truth or myth?
This content was published on
The strong franc no longer poses a threat to the Swiss economy. What has changed in the last ten years?
The policy reversal announced in June this year was largely based on the fact that high inflation rates in Switzerland’s major trading partners had led to a weakening of the franc’s position. Nevertheless, the SNB said it would be ready to revert to purchases in the case of an “excessive appreciation”.
The euro, the most important currency for Swiss imports and exports, fell from near-parity in July to an all-time low of CHF0.94 at the end of September. On Friday morning, the European currency was worth CHF0.986.
As for the US dollar, after rising almost to parity in September, it has again fallen back: yesterday, it was valued at CHF0.92, its lowest level since March 31.
This content was published on
Switzerland's economy grew slightly at the start of 2024, with growth in the service sector contrasting with weak growth in industry.
Swiss employment rate rises in first quarter of 2023
This content was published on
The number of women and foreign nationals in employment increased particularly strongly, the Federal Statistical Office said on Thursday.
Coercion still an issue in Swiss welfare system, report finds
This content was published on
The rights of vulnerable people are still sometimes disregarded by the Swiss welfare system, a national research programme has found.
This content was published on
Viola Amherd has expressed her “deep shock” at the assassination attempt on Slovakian Prime Minister Robert Fico on Wednesday.
This content was published on
A man injured half a dozen people with knives, two of them seriously, before being arrested on Wednesday in northern Switzerland.
Switzerland to introduce flight passenger database
This content was published on
Switzerland plans to introduce a flight passenger database to collect and process personal data in a bid to combat terrorism and serious crime.
Government plans to invest over CHF16bn in Swiss rail network
This content was published on
The federal government intends to invest CHF16.4 billion ($18.1 billion) in railway infrastructure between 2025 and 2028, CHF2 billion more than for the current period.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Why the strong franc no longer scares Swiss businesses
This content was published on
While the Swiss franc keeps rising against the euro, hardly any voices can be heard in Switzerland denouncing the nation’s pricey currency.
This content was published on
The SNB has taken a hit of CHF95.2 billion for the first half of this year, mainly owing to losses on foreign currency positions.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.