© Reuters. SNB stayed in currency buying under sustained pressure on Franc
(Bloomberg) – Vision deposits at the Swiss National Bank ticked higher last week, which is evidence of officials’ commitment to keep the franc in check in the face of increased port pressure.
The amount of cash commercial banks parked at Switzerland’s monetary authority increased by 4 billion francs ($ 4.1 billion) last week to 674 billion francs, data shows on Monday. That’s the smallest nominal increase in a month.
Economists are closely monitoring the SNB’s deposits-to-deposits ratio to help measure the extent of its foreign exchange interventions to prevent the franc from strengthening too much. Liquidity operations under SNB’s Covid-19 facility may also contribute to the increase in visibility.
A central bank spokesman declined to comment.
Both SNB President Thomas Jordan and college rates Andrea Maechler have emphasized that the SNB has increased the intensity of interventions in recent weeks.
As the global economy is heading for its deepest dive since the Great Depression, pressure on the port of France has increased significantly, Maechler told Neue Zwegeer Zeitung daily in an interview published on Saturday.
It has flirted with 1.05 pr. The euro mark in recent sessions, which has wondered whether SNB, which between 2011 and 2015 limited the value of the franc to 1.20 per share. Euro, may have drawn a line in the sand there.
Maechler denied in the interview that the 1.05 level was becoming something of an informal upper limit. The SNB generally takes into account the currency situation, she said.
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