In the fourth quarter: SNB sold foreign currency for $22.7 billion

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This emerges from SNB statistics published on Thursday. While publishing its annual report a few days ago, the Central Bank announced that it sold foreign currency worth a total of 132.9 billion francs in 2023. The stated value for the last quarter of the year could already be calculated from this.

SNB thus significantly accelerated its foreign exchange sales in 2023: It sold foreign currency worth 22.3 billion in 2022. The paradigm shift for monetary authorities occurred that year.

The SNB was constantly buying foreign currency in order to prevent the Swiss Franc from gaining excessive value before 2022. For example, while 21.1 billion francs worth of foreign currency was purchased in 2021, this figure was almost 110 billion francs in 2020.

Meanwhile, the focus was on foreign exchange sales. The SNB is fighting inflation not only through interest rate hikes but also through the strong Swiss franc. An appreciating franc helps import less inflation from abroad.

Inflation has now fallen back to the desired range, allowing the SNB to cut key interest rates last week. Foreign exchange sales are therefore no longer the focus of monetary authorities, although they still retain the right to intervene.

(SDA)

Source :Blick