SNB out with the data 26 June

  • vs CHF 8bln Q1 2016
  • increase due to the higher receipts surplus on trade in good and services

Say the SNB:

  • In the first quarter of 2017, the current account surplus amounted to CHF 11 billion, or CHF 3 billion up on the year-back quarter. The increase was due to the higher receipts surplus on trade in goods and services.
  • Primary income (labour and investment income) recorded an expenses surplus, following a slight receipts surplus in the first quarter of 2016. This development is attributable to receipts from direct investment declining more sharply than expenses. The expenses surplus on secondary income (current transfers) was somewhat lower than in the same quarter in the previous year. The transactions recorded in the financial account resulted in a net acquisition of financial assets of CHF 15 billion in the first quarter of 2017 (Q1 2016: net reduction of CHF 13 billion).
  • A major contribution was made by reserve assets, which showed a high net acquisition due to the SNB's foreign currency purchases. Direct investment and portfolio investment also recorded net acquisitions. This was in contrast to a net reduction in other investment, due largely to the SNB decreasing its financial assets that are not included in reserve assets.
  • The liabilities side registered a net reduction of CHF 4 billion (Q1 2016: net reduction of CHF 30 billion). A key factor was the high net reduction in other investment attributable to commercial banks decreasing liabilities towards non-resident banks. Direct investment, by contrast, experienced a net incurrence of liabilities

Full report here

USDCHF remains on the back foot as EURUSD climbs up to 1.1207 with EURCHF holding firm at 1.0860.

Switzerland - Current account surplus rises to CHF 11 bln in Q1 2017