Central Banks
SNB Sees 1,000-Franc Banknote Circulation Drop as Rates Rise
- Rise in borrowing costs has disincentivized cash hoarding
- SNB Vice President Martin Schlegel briefs reporters in Bern
Thomas Jordan during a rate announcement in Bern, Dec. 15.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Swiss high-denomination banknotes in circulation have slumped after interest-rate increases removed an incentive to hoard cash.
Speaking to reporters in Bern, Swiss National Bank Vice President Martin Schlegel revealed a 10% drop in the overall value of bills in the economy since June, when borrowing costs began rising. The total fell by 10 billion francs ($10.8 billion) to 81 billion francs in October, he said.