FRANKFURT (MNI) – The Swiss National Bank said Wednesday it aims to
expand banks’ sight deposits at the SNB from CHF120 billion to CHF200
billion in a bid to weaken the “massively overvalued” Swiss franc.
“In order to achieve this new target level as quickly as possible,
it will continue to repurchase outstanding SNB bills and to employ
foreign exchange swaps,” the central bank said.
Earlier this month, the SNB announced its intention to expand
banks’ sight deposits at the SNB from CHF80 billion to CHF120 billion.
“The measures taken thus far by the Swiss National Bank against the
strength of the Swiss franc are having an impact,” it said.
“Nevertheless, the Swiss franc remains massively overvalued.”
The SNB stands ready to “take further measures against the strength
of the Swiss franc,” the central bank said.
–Frankfurt newsroom +49 69 72 01 42; e-mail: jtreeck@marketnews.com
[TOPICS: M$X$$$,M$$EC$,MT$$$$,M$$FX$,MGX$$$,MFX$$$]
