Swiss foreign currency reserves hit new record in November

The foreign exchange reserves of the Swiss national Bank rose by CHF 17.6 billion in November to CHF 648 billion, setting a new record. During the month of October, the variation was more subdued as it increased by CHF 2.4 billion to CHF 630.4 billion. The SNB’s reserves are roughly equal to Switzerland’s entire gross domestic product.

It was the biggest increase since December 2014, the month before the SNB abandoned a ceiling it had maintained for over three years on the franc’s value against the euro.

SNB officials have repeatedly said the franc is “significantly overvalued” and that they are willing to intervene as needed.

In November, the Swiss franc fell roughly 2.5% against the US dollar, 5% against the pound sterling but rose 0.80% against the single currency. 

The recent weakness in the franc can also be attributed to the sudden sharp rise in the yield difference after Republican candidate Donald Trump won the US Presidency.