Swiss holdings reach 12-year high
In the second quarter the Swiss central bank's foreign currency holdings raised to the highest level in at least 12 years. In March the Swiss central bank started buying foreign currencies after an appreciating franc eroded exports and threatened to push the economy into deflation. Switzerland wants to keep their economy bolstered by taking firm action to prevent any further gains for their currency.
The Swiss National Bank's currency holdings rose 46% to CHF81.7 billion from CHF55.8 billion at the end of the first quarter, the highest since at least 1997. Dollar holdings rose to USD19.9 billion from USD13.2 billion, and euro investments jumped to EUR32 billion from EUR20.3 billion.
The Swiss National Bank's decision to weaken the franc has the currency's foreign exchange rate at GBP0.5702 and EUR0.6585.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.