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Tag Archives: Business

Economic cost of pandemic will be enormous: SNB chief

Jordan insists the central bank can continue to defend the Swiss franc. (Keystone / Marcel Bieri) Coronavirus is costing between CHF11 billion and CHF17 billion a month, putting such a strain on the Swiss economy that it will take years to recover. Swiss National Bank (SNB) chairman Thomas Jordan has predicted the worst depression since the 1930s. In two newspaper interviews on Sunday, Jordan warned of significant job losses and an erosion of prosperity in the wake...

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Swiss central bank resists temptation to reduce interest rates

[caption id="attachment_439311" align="alignleft" width="400"] SNB chairman Thomas Jordan said the central bank will continue to defend the franc. (Keystone / Marcel Bieri)[/caption] The Swiss National Bank (SNB) has kept interest rates unchanged at -0.75% but is easing the burden on commercial banks. The SNB said on Thursday that it is also intervening on the foreign exchange markets to keep the franc from appreciating too far, too fast. The SNB’s...

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Bank savers feel sting from negative interest rates

The Swiss franc is in such high demand that the central bank is imposing charges on stockpilers. (© Keystone / Gaetan Bally) Swiss savers are being made to pay for global demand for the franc. The number of bank customers being charged negative interest rates on their deposits is on the rise – and shows no sign of reversing. The problem for domestic savers stems from the popularity of the Swiss currency. Amid economic uncertainty worldwide and a paucity of return on...

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‘We’re green enough’ says Swiss central bank 

An iceberg melts in Kulusuk, Greenland near the arctic circle. (file photo) (Keystone / John Mcconnico) The Swiss National Bank (SNB) is doing enough to mitigate climate damage with its investment policy, senior directors have stated. Switzerland’s central bank does not have the mandate to impose environmental conditions on the commercial banking sector. The remarks follow a recent speechexternal link by the new head of the International Monetary Fund...

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Negative interest rates ‘harm Swiss economy’

Swiss firms fear that savers and pensioners will suffer from negative interest rates. (Keystone / Gaetan Bally) A survey of Swiss companies commissioned by UBS bank concludes that negative interest rates are harming the wider economy. Switzerland’s largest bank, UBS, asked 2,500 companies about the impact of negative interest rates. “Nearly two-thirds of respondents said that the cost…for the economy outweighed their benefits overall,” UBS said in a press...

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Pressure returns on Swiss franc amid global uncertainty

The Swiss franc has started to appreciate in value against other currencies, including the euro, once again. One knock-on effect of the escalating trade war between the United States and China is that the Swiss franc is becoming more attractive for investors – putting pressure on the Swiss National Bank (SNB) to come to the defence of the safe haven currency. For much of July a euro bought at least CHF1.10. But the...

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Swiss mortgages and bank profits rise as jobs scale down

The Swiss banking industry continues to turn in a profit despite low interest rates. Swiss commercial banks achieved higher profits last year, mortgage loans tipped the CHF1 trillion ($1.02 trillion) mark and costs were saved by reducing headcounts. These are the findings of an annual report from the Swiss National bank (SNB). The SNBexternal link’s “Banks in Switzerlandexternal link” annual report shows combined Swiss...

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Swiss central bank asked to issue stock exchange digital currency

The Swiss central bank produces paper money for general use, but will only contemplate digital currencies for specific industry use cases. The Swiss stock exchange wants the country’s central bank to issue a form of cryptocurrency to settle payments on its new digital securities trading platform. If the Swiss National Bank (SNB) agrees, it would represent a departure from its cautious policy on digital currencies. Stock...

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Swiss franc still highly valued, but no policy change

Jordan has been chairman of the SNB since 2012. The Swiss franc, investment in arms, and the housing market were some of the issues the government discussed with the chairman of the Swiss National Bank. SNB chairman Thomas Jordan told the government that he sees the Swiss currency as highly valued and warned of the continuing risks of bubbles in the housing market. “Jordan emphasised that monetary policy with negative...

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Realizing the Potential of the G20 Compact with Africa

By Christine Lagarde October 30, 2018 Power Plant, Abidjan, Cote d’Ivoire. The G20 Compact with Africa was initiated under the German G20 Presidency to promote private investment in Africa, including in infrastructure. So far, eleven African countries have joined the initiative: Benin, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia (photo: Thierry Gouegnon/Reuters/Newsom) The Compact with Africa focuses on a fundamental challenge for the...

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