by How Switzerland peps up SMEs: Banks are encouraged to extend credit (at 0%). The treasury guarantees the loans. The SNB refinances banks and accepts the guaranteed loans as collateral. Fast and efficient. Eventually, some of these loans will turn into grants of course. But that’s ok; the first-best response to a shock with asymmetric effects does involve transfers if markets are incomplete. You Might Also Like BIS Innovation Hub Centre in Switzerland From the SNB’s press release regarding the newly established BIS Innovation Hub Centre in Switzerland: The Swiss Centre will initially conduct research on two projects. The first of these will examine the integration of digital central bank money into a
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Dirk Niepelt considers the following as important: 1) SNB and CHF, 1.) Dirk Niepelt, Coronavirus, Featured, newsletter, Notes, Swiss National Bank, Switzerland
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Swiss National Bank writes 2021-01-08 – Swiss National Bank expects annual profit of around CHF 21 billion for 2020
Swissinfo writes Swiss franc shrugs off being put on the naughty step by US
George Dorgan writes Swiss balance of payments and international investment position: Q3 2020
FINMA: News writes Krankenzusatzversicherer: FINMA sieht umfassenden Handlungsbedarf bei Leistungsabrechnungen
How Switzerland peps up SMEs: Banks are encouraged to extend credit (at 0%). The treasury guarantees the loans. The SNB refinances banks and accepts the guaranteed loans as collateral. Fast and efficient. Eventually, some of these loans will turn into grants of course. But that’s ok; the first-best response to a shock with asymmetric effects does involve transfers if markets are incomplete.
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BIS Innovation Hub Centre in Switzerland
From the SNB’s press release regarding the newly established BIS Innovation Hub Centre in Switzerland: The Swiss Centre will initially conduct research on two projects. The first of these will examine the integration of digital central bank money into a distributed ledger technology infrastructure. This new form of digital central bank money would be aimed at facilitating the settlement of tokenised assets between financial institutions.
Central Banks Zoom In on CBDC
According to a BIS press release, several leading central banks collaborate with the BIS on matters relating to the introduction of CBDC: The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank and the Swiss National Bank, together with the Bank for International Settlements (BIS), have created a group to share experiences as they assess the potential cases for central bank digital currency (CBDC) in their home jurisdictions.
Swiss National Bank expects annual profit of 49 billion francs
According to provisional calculations, the Swiss National Bank (SNB) expects to make a profit of around CHF 49 billion in 2019. Most of this comes from the rising value of the SNB’s foreign currency positions (+CHF 40 billion) and a valuation gain on gold holdings (+CHF 6.9 billion).
SNB Profit in 2019: 48.9 billion (2018: loss of CHF 14.9 billion, 2020 Does not Look Good)
The increasing volatility of SNB Earnings Annual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, they have huge swings. But the SNB may lose 50 billion in one year and win 60 billion in the next year or vice verse. Good years of the Credit Cycle This trend was … Continue reading »
Jim Bianco: “This Is One Of The Biggest Moments Of Truth In Financial Market History”
To contain the economic and financial ramifications of the coronavirus pandemic, Central Banks are going all in. Jim Bianco, founder and chief strategist of Bianco Research, warns that this time, monetary policy might be unable to stop financial markets from collapsing.
USD/CHF Price Analysis: Dollar trading in fresh March’s highs, challenging 0.9750 level
USD/CHF is reversing up sharply from the 2020 lows. The level to beat for bulls is the 0.9750 resistance. USD/CHF is rebounding sharply from 2020 lows while nearing the 100 SMA on the daily chart. The demand for the greenback is dring the currency pair towards the 2020 highs.
Weekly SNB Sight Deposits and Speculative Positions: Corona Panic
Update March 23, 2020: Sight Deposits have risen by 5.8 bn CHF, this means that the SNB is intervening and buying Euros and Dollars: The change is +5.8 bn. compared to last week.
The intervention point is slightly under 1.06 EUR/CHF.
USD/CHF Price Analysis: US dollar eases from 2020 highs, stabilizes near 0.9800 figure
USD/CHF consolidates gains for the second consecutive day. The level to beat for bulls is the 0.9900 resistance. The parity level might be on the bulls’ radar. USD/CHF is retreating slightly this Monday while the currency pair is consolidating gains for the second consecutive day above the main SMAs.
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