SWISS NATL BANK DECLINES COMMENT ON INTERVENTION VS EURO REPORT
Ahem.
Earlier in the session, the EURCHF cross hit a record low on continued concern about the situation in the European periphery. The sell-off continued after official data showed Switzerland’s currency reserves posted the sharpest rise on record.
Overall currency reserves rose CHF78.8bn to 232.4bn ($200bn) in May. (To put that figure in perspective, reserves rose by just CHF28.7bn in April).
According to RBS, the Swiss National Bank is going to have trouble sterilising its continued FX intervention — and should just let the CHF go.
As evidence for that view, it provides the following chart – FX reserves adjusted for sterilisation:
Related links:
Bonfire of the currency correlations – FT Alphaville
Swiss franc intervention cost a billion a day in April - FT Alphaville