Swiss Sight Deposits Soar After SNB Introduced Zero Rate Regime
Sight deposits at the Swiss National Bank rose sharply after its reduction of borrowing costs to zero, as foreign banks moved cash to the institution to escape negative interest paid in the money market.
Last week, total sight deposits increased by some 18 billion francs ($23 billion) compared to the previous period, according to data published on Monday. This was due to holdings from foreign banks rising by 22 billion francs, while those of domestic lenders dropped by 4 billion francs.
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