The Swiss central bank’s foreign-currency reserves dropped in December after pressure on the franc eased.
Holdings declined to 427.2 billion francs ($460 billion) from a revised 427.4 billion francs in November, the Zurich-based Swiss National Bank said on its website today. The holdings are calculated according to International Monetary Fund standards at the beginning of every month. Economists expected reserves of 423 billion francs at end-December, the median of three estimates in a Bloomberg News survey showed.
SNB President Thomas Jordan has vowed to maintained a franc cap of 1.20 per euro introduced in September 2011 “with the utmost determination.” The currency, which almost reached parity with the euro before the ceiling was introduced, has weakened 0.7 percent since the European Central Bank said on Aug. 2 it will buy government bonds in tandem with Europe’s rescue fund should nations request aid.
The franc traded at 1.20860 versus the euro at 9:07 a.m. in Zurich. It has remained in a range of 1.20 to 1.24 since the cap was imposed, breaching it just once. Against the dollar, the Swiss currency was at 92.79 centimes.