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SNB Research Details Billions Needed to Keep Currency in Check
The Swiss National Bank needs to spend roughly 27 billion francs ($30 billion) to keep its currency from appreciating 1.1%, according to a staff paper that offers a rare vignette into what officials may be thinking. Currency purchases by the central bank “are effective and long-lasting,” and have helped Switzerland avoid a large drop in consumer prices in recent years, Tobias Cwik and Christoph Winter wrote in research published on the SNB’s website on March 28. While purchases of foreign currency have long been one of the SNB’s tools of choice to keep its haven currency in check, policymakers are typically ... (full story)