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Demand deposits in SNB were CHF 532.2 billion on April 7, which is CHF 31.3 billion less than the previous week. But two weeks ago, demand deposits had increased significantly – CHF 51.9 billion. Such an increase has never been seen before.
st. Thomas Stucki, chief strategist at Wales Kantonalbank, has a suspicion: The spills were triggered by turmoil in the local banking industry. So they were probably involved with UBS’s takeover of Credit Suisse.
When asked by the AWP news agency, Stucki said, “While demand deposits rose sharply at first as the two banks wanted to provide liquidity, this situation has calmed down recently and they are reducing liquidity again.”
However, such a sharp decline in demand deposits in SNB may have also triggered SNB’s foreign exchange sales. “However, the amount seems high for a week,” says Stucki, who has bet on the two big banks.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
