Swiss National Bank is battling CHF appreciation
The Swiss National Bank is keeping up its activity on the forex market. The institution is focused on keeping the growth of franc’s value in check.
Total sight deposits in the Swiss currency have gone up to 638.204 billion, equaling US$658.47 billion. Last week it was 3 billion less. The recent growth comes after two weeks of even larger increases. In the last week of the last month the deposits have gone up 11.6 billion.
The economist of J.Safra Sarasin Karsten Junius believes, that the Bank is now intervening less often than earlier. The expert claims, that as the markets are becoming less risk-averse, the high demand for safe haven currencies is gradually falling.
Last week the MSCI World Index went up 3.1%. Stocks were gradually recovering as the countries were easing the national lockdowns.
During the most dangerous period of the coronavirus pandemic, the SNB has been intervening especially often. The institution has been balancing the market in order to cut the growth of franc’s value.