The sight deposits of National Banks at SNB was around 25b mid 2011, now we are at 285b.
Selling EUR at 1,23 and buying back at 1,20 would make a profit, but investors might then worry to be outsmarted again by SNB,
so the Swissie might then be trapped at 1,20.
So I presume the SNB waits for EUR/CHF to reach 1,28..1,29 before starting to reduce their reserves.
Honestly I feel that selling reserves will fail in the long run (2-5 years).
The peg will not be lifted soon, see e.g.
http://www.snb.ch/en/mmr/speeches/id/ref_20130219_tjn
Of course they did not mention that the trade surplus
a) reached a new all time high
b) would be much higher when excluding trade partner #1 (Germany) and other large EUR zone countries which profit from the undervalued currency.
see http://www.bfs.admin.ch/bfs/portal/d...elsbilanz.html
So criticism from the rest of the world except Germany might persist.
Selling EUR at 1,23 and buying back at 1,20 would make a profit, but investors might then worry to be outsmarted again by SNB,
so the Swissie might then be trapped at 1,20.
So I presume the SNB waits for EUR/CHF to reach 1,28..1,29 before starting to reduce their reserves.
Honestly I feel that selling reserves will fail in the long run (2-5 years).
The peg will not be lifted soon, see e.g.
http://www.snb.ch/en/mmr/speeches/id/ref_20130219_tjn
Of course they did not mention that the trade surplus
a) reached a new all time high
b) would be much higher when excluding trade partner #1 (Germany) and other large EUR zone countries which profit from the undervalued currency.
see http://www.bfs.admin.ch/bfs/portal/d...elsbilanz.html
So criticism from the rest of the world except Germany might persist.
I can wait another year)
