On 15 billion Swiss francs the Swiss national Bank (SNB) has estimated its loss for the past year. This is a gigantic number. A public Outcry, there will be this Time, however, because the distributions to the Confederation and the cantons 2 billion still remain secured. This is because the SNB in 2017, has made a profit of 54 billion Swiss francs and the dividend reserves are filled even to the brim.
High losses and profits arise in the case of the SNB, in the future, after a relatively small changes to the foreign exchange, bond and stock markets. This is due to the fact that the national Bank sits on foreign exchange reserves in the amount of 775 billion Swiss francs, which has invested mainly in foreign bonds and shares. In these systems it has invested in the foreign currency, which it has bought in recent years, the strong appreciation pressure on the Swiss franc resist. In the meantime, these foreign exchange reserves, approximately 94 percent of the total SNB balance sheet. The extent of this balance sheet is held with a ratio of approximately 120 percent of economy emissions the world record of Central Bank balance sheets.
as before, the SNB will do everything to prevent a further sharp appreciation of the Swiss franc. For this purpose the in the financial sector and for savers extremely unpopular negative interest rates. You will discourage investments in the Swiss franc and the interest rate differential to the European Central Bank maintained their interest rates are also at historic all-time low.
There is occasion to Doubt
yesterday announced the loss of the Central Bank is likely to fuel the criticism of their policies now, as it is already in the run-up to loud. Even Finance Minister Ueli Maurer was in spite of the commandment of the independence of the SNB will not deter you from their bloated balance sheet in question.
On days indicator.ch/Newsnet pushes in an Interview with Klaus Wellershoff into the same Horn. The former chief economist of UBS and founder of the economic Advisory Bureau considers that the measures taken by the SNB is acceptable. He refers to the very good economic situation in Switzerland. Inflation was lower than the SNB in the past years, it holds even for positive. A further appreciation of the Swiss franc could withstand the Switzerland’s already good as it also has the last coped.
There are good reasons to doubt such assessments. The consequences of the Overvaluation in recent years is likely to have cost, according to estimates, up to 100’000 jobs in the industry.
In the case of the SNB, you should not beat arguments like those of wellershoff, nevertheless, carelessly in the Wind, because he is likely not the last stay, which brings you into the field. The negative consequences of the recent appreciation of the Swiss franc are fading rapidly. Many of you even have a good memory – for example, because the reduced your foreign holiday. Arguments for a correct valuation of the Swiss franc and the interest rate differential also technically. The negative consequences of the inflated balance sheet, and the negative interest rates are easy to understand, and painful palpable – for example, by the billion loss for the SNB, or by low yields of the pension funds.
(Tages-Anzeiger)
Created: 09.01.2019, 22:07 PM
