Swiss FX reserves increases in past 12 months

EUR-CHF was under moderate pressure in the past few days. It is now trading much below the mark of 1.09 again. The new exchange rate regime does not work to avert increase in balance sheet of SNB, according to Commerzbank. Swiss FX reserves have increased by CHF 53 billion in the past 12 months.

This is lesser than CHF 173 billion recorded in 2012, when the central bank established the credibility of the 1.20 regime, added Commerzbank. However, it is more than CHF 8 billion recorded in 2013.

This shows that the present regime is more unsustainable than the old 1.20 regime, noted Commerzbank. When the euro was gaining at one time against the rest of the world, the SNB had to intervene.