World Economy

SNB Reserves Rise

SNB Reserves RiseSNB Reserves Rise

The Swiss National Bank’s foreign-currency reserves rose to record in July, a month when the franc weakened against both the dollar and the euro, Bloomberg reported. The reserves increased 3% to 531.8 billion francs ($542 billion) from 516 billion in June, according to data published on the central bank’s website on Friday. SNB spokesman Walter Meier declined to comment on the data. The central bank’s foreign-currency reserves mushroomed due to interventions it waged to defend its cap on the franc, set in 2011. Despite having abolished the ceiling in January, SNB policy makers have said repeatedly they’re ready to intervene if needed to ensure monetary conditions remain adequate, with SNB President Thomas Jordan on June 29 uncharacteristically admitting to interventions to “stabilize” the franc amid Greece’s debt crisis. “The fact that the franc has weakened, I think it’s the main driver for the gain in reserves,” said Alessandro Bee, strategist at  Bank J. Safra Sarasin Ltd in Zurich. In July, the franc depreciated 1.8% against the euro and 3.2% against the dollar.