Swiss Foreign Currency Reserves Fall 2 Percent in June

The Swiss National Bank’s foreign-currency reserves fell in June, as the franc strengthened against both the euro and the dollar.

Holdings decreased to 434.9 billion francs ($453.6 billion), from a revised 444.1 billion francs May, the Zurich-based Swiss National Bank said on its website today.

The holdings, calculated according to International Monetary Fund standards at the beginning of every month, hit an all-time peak in May.

In June the reserves had been expected to fall to 436 billion francs, according to the median forecast of 3 economists in a Bloomberg News survey.

The SNB, which committed to defending a ceiling of 1.20 per euro in September 2011, has amassed foreign-currency reserves equal to about three-quarters of Switzerland’s annual economic output as a result of its efforts to defend the limit.

via Businessweek

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza