Big reversal in USD/CHF
What’s less clear is what’s driving so much Swiss franc weakness. There’s plenty of chatter about the SNB.
The central bank recorded a 15 billion franc loss on the stock market rout on the combination of losses in its equity market portfolio and its foreign currency reserves. The franc was the top performer last year and it lost 16 billion on FX alone.
The SNB holds 729 billion francs in foreign currency reserves which is a massive hoard by almost any standard, let alone a small economy.