SNB to record all time high Forex Reserves

SNB, Floor scrapping, Swiss franc,Short while ago, the Swiss National Bank has published their statistical performance of the last couple of months, including the highly disputed month of January. A horrid month to remember as the SNB Black Swan occurred, thrusting the Forex market into turmoil, whilst devastating a great number of financial entities and even pushing a few casualties into bankruptcy.

Even though, the impact was significant pessimistic for some, the Swiss National Bank recorded its all time high of forex reserves for the month following the debacle. This displays the persevering strength of the Swiss National bank post the removal of the 1.20 cap, which have been in place for brief period of three years. Evidently, the SNB maintained the process of buying money to constrain the Swiss franc. Interestingly, at a later stage it was convinced in a policy that the act of removing the cap in January, cost 100 bln francs.

Having a closer view upon the bank’s reported forex reserves over the last couple of months; it is remarkable to witness the growth it has sustained. Ending the shocking month of January, the SNB recorded a significant 498.463 billion francs at it’s closure. Yet for the month February, it can be clearly seen that the figure has risen to 509.250 billion Swiss francs, setting the SNB to record all time high Forex reserves!

Turmoil of speculations

By what means, was there a remarkable growth of almost 11 bln Swiss franc? Raising suspicious thoughts among the analysts and the industry specialists. Various speculations have been rumored saying that the bank did not stop intervening, whilst others assume that it was due to a deprecation of the franc in the last month. Adding oil to the fire, the SNB did not immediately comment on the given case.

All that there is to know are the given facts, when assessing the Swiss franc closely it is clear that the currency is currently 10% stronger against the euro, before the SNB Black Swan event.

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