Additional comments made earlier by SNB Jordan to Neue Zuercher Zeitung

  • initiative would make monetary policy measures more costly than they are now
  • based on current size of balance sheet SNB would have to buy CHF 70bln worth of gold
  • Swiss currently have highest per-capita gold reserves
  • forcing SNB to hold more gold could impact on payout to cantons
  • SNB must be able to expand balance sheet at times of crisis and reduce it again later
  • 2o% requirement and ban on sales could mean at some point SNB balance sheet would consist only of gold, which would make it hard to guarantee price stability

The SNB’s objection to the referndum is well documented and is now becoming a real elephant in the room especially with EURCHF so close to the cap. Eamonn wrote this informative background piece here originally.

EURCHF 1.2034 having dipped to 1.2030 on the earlier comments reported here from Blick

Jordan - no fan of the gold referendum

Jordan – no fan of the gold referendum