It’s not too early to highlight the potential problems facing the Swiss National Bank, as we approach the November 30th Swiss gold referendum on whether the central bank should raise gold reserves to hold 20% of its total reserves from the current 7.8%. And given the risks to its policy-making, the SNB may have to act pre-emptively. The initiative, supported by the Swiss People’s Party, favours the inclusion of more gold at the bank, but Swiss parliament and the central bank counter that the yellow metal lacks effectiveness as a monetary policy tool. The SNB prefers to continue selling gold and holding liquid ... (full story)