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The euro/Swiss franc cross shoots to its highest level since shortly after the SNB instituted...

The euro/Swiss franc cross shoots to its highest level since shortly after the SNB instituted the CHF1.20 floor nearly a year and a half ago. Chatter on the desks says the SNB is way long yen (which it bought to diversity out of euros), and has been selling gold to cover its losses. The yen has sunk to multi-year lows vs. both the euro and the greenback. As they rise, gold falls, -1.2%.
Comments (4)
  • Jimvickery
    , contributor
    Comments (438) | Send Message
     
    http://bit.ly/i4Zyk7
    11 Jan 2013, 10:37 AM Reply Like
  • aegetswil
    , contributor
    Comments (5) | Send Message
     
    Here are the facts which were published in the Swiss newspapers on Nov 1, 2012:
    The Swiss National Bank (SNB) made a profit of 16.9 Billion francs for the first 9 months of 2012. 6.2 of that was due to a higher valuation gain of gold, and 10.3 Billion on foreign currencies.
    The total assets of SNB has swollen to 509 Billion francs, due to their intervention on the market to peg the Swiss Franc to the Euro at 1.20. That is 158 Billion francs more than the start of the year.

     

    The foreign currency assets of SNB increased by 172 billion to 429.9 billion francs at the end of September 2012.
    11 Jan 2013, 02:31 PM Reply Like
  • bertrandrighi2
    , contributor
    Comments (37) | Send Message
     
    I buy the Swiss. I mean I trust them. Their banks do BANKING. Of course they got to read about the political news, which recently have taken an EXAGERATED position into the economies.
    But they focus on that: BANKING. Not speculating. Not gambling. Not trading derivatives at the 10th degree. BANKING. Pure banking. Real banking. No government subsidies. No QE. And for security you cannot dream anyting better: they are all linked in a POOL, any of them being responsible for the others. Where else do you see that ?

     

    They do banking like they do their watches or else: very seriously, with no extravagant fancies, watches to last for CENTURIES...

     

    Long live the SWISS !!!

     

    ( I am NOT a Swiss )
    12 Jan 2013, 10:25 AM Reply Like
  • piyush08
    , contributor
    Comments (2) | Send Message
     
    The SNB doesn't buy have to fork up money to fund any losses.. cause it doesn't buy futures or trade on margin.. It was buying Euro to defend 1.2 on EURCHF.. and it probably sold those euros against many other currencies to spread out its risk.. but it hasn't bought futures or leveraged and traded.. it doesn't have mark to market payments that it will need to sell Gold to pay up for the losses..
    16 Apr 2013, 02:25 PM Reply Like
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