SNB Spent 67.1 Billion Francs on Currency Interventions in 2016

  • Figure published in the central bank’s annual report
  • Interventions used to counter appreciation pressure on franc

Marvin Barth: SNB to Intervene Aggressively on Franc

The Swiss National Bank bought foreign currencies worth 67.1 billion francs ($67.6 billion) last year as it sought to contain the strength of its currency.

The sum, published in the central bank’s annual report on Thursday, compares with a 2015 tally of 86.1 billion francs and a record of 188 billion spent in 2012.

The SNB has used interventions for the better part of a decade to keep the franc, popular among investors as a haven, in check and lessen the risk of deflation. After it gave up its currency cap in early 2015, the SNB has also relied on a negative deposit rate to counter appreciation pressure. It affirmed that two-pillar policy stance last week.

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