Latest news with #SwissFranc
Yahoo
4 days ago
- Business
- Yahoo
Swiss sight deposits jump spurs talk of central bank currency intervention
By John Revill ZURICH (Reuters) -Cash lodged by commercial banks overnight with the Swiss National Bank rose to its highest level in 15 months last week, data showed on Monday, sparking speculation the central bank could be intervening to weaken the Swiss franc. Total sight deposits held by the SNB increased by 11.2 billion Swiss francs ($14.00 billion) to 475.3 billion francs, the highest level since April 2024. Normally an increase can be seen as a sign the SNB is buying foreign currencies from banks and crediting their accounts with newly created francs, a way to weaken the safe-haven currency whose high value has weighed on inflation. The SNB declined to comment on the data. GianLuigi Mandruzzato, an economist at EFG Bank, said the increase could mean the SNB intervened last week, although other factors could be involved. "With interest rates at zero and with the SNB reluctant to go negative, intervention is likely to be its favoured approach," he said. Maxime Botteron, an economist at UBS, said the sight deposit rise could signal interventions, although other explanations were more likely. "They could have intervened, but there was no urgent need to do so," he said. "The franc appreciated moderately against the euro last week, but did not reach the April high, and I don't think the SNB would intervene against the dollar." Instead, Botteron said the increase in sight deposits could reflect the expiration of SNB bills, where the principal is repaid to the banks who bought them at the end of their term and the money credited to their sight deposit accounts. The money could also be due to the SNB not rolling over existing repos, and instead repurchasing the instrument from banks and crediting their sight deposit accounts, Botteron said. Karsten Junius, chief economist at J. Safra Sarasin, doubted the SNB was intervening, with the sight deposit data more likely showing the SNB scaling back its use of bills and repos. "If they are reducing the use of these instruments, it could be because the SNB is trying to steer the SARON lower by taking less liquidity out of the market," he said, referring to the Swiss interbank rate. ($1 = 0.7999 Swiss francs)
Reuters
4 days ago
- Business
- Reuters
Swiss sight deposits jump spurs talk of central bank currency intervention
ZURICH, July 21 (Reuters) - Cash lodged by commercial banks overnight with the Swiss National Bank rose to its highest level in 15 months last week, data showed on Monday, sparking speculation the central bank could be intervening to weaken the Swiss franc. Total sight deposits held by the SNB increased by 11.2 billion Swiss francs ($14.00 billion) to 475.3 billion francs, the highest level since April 2024. Normally an increase can be seen as a sign the SNB is buying foreign currencies from banks and crediting their accounts with newly created francs, a way to weaken the safe-haven currency whose high value has weighed on inflation. The SNB declined to comment on the data. GianLuigi Mandruzzato, an economist at EFG Bank, said the increase could mean the SNB intervened last week, although other factors could be involved. "With interest rates at zero and with the SNB reluctant to go negative, intervention is likely to be its favoured approach," he said. Maxime Botteron, an economist at UBS, said the sight deposit rise could signal interventions, although other explanations were more likely. "They could have intervened, but there was no urgent need to do so," he said. "The franc appreciated moderately against the euro last week, but did not reach the April high, and I don't think the SNB would intervene against the dollar." Instead, Botteron said the increase in sight deposits could reflect the expiration of SNB bills, where the principal is repaid to the banks who bought them at the end of their term and the money credited to their sight deposit accounts. The money could also be due to the SNB not rolling over existing repos, and instead repurchasing the instrument from banks and crediting their sight deposit accounts, Botteron said. Karsten Junius, chief economist at J. Safra Sarasin, doubted the SNB was intervening, with the sight deposit data more likely showing the SNB scaling back its use of bills and repos. "If they are reducing the use of these instruments, it could be because the SNB is trying to steer the SARON lower by taking less liquidity out of the market," he said, referring to the Swiss interbank rate. ($1 = 0.7999 Swiss francs)
Yahoo
09-07-2025
- Business
- Yahoo
Dollar cedes ground to euro, Swiss franc shines in global reserves, IMF data shows
By Karin Strohecker and Grant Smith LONDON (Reuters) -The U.S. dollar's share of global currency reserves reported to the International Monetary Fund nudged lower to 57.7% in the first quarter of 2025 while the share of euro-denominated reserves gained, International Monetary Fund data showed. Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1% - their highest since late 2022, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday. But it was the Swiss franc which saw the most dramatic increase, quadrupling its share to 0.8% of reserves by end-March - the highest level since at least 1999 when the euro was introduced - while the share of pound sterling also rose. Foreign currency markets have seen some dramatic swings since the start of the year. The dollar lost nearly 4% in the first quarter of the year as some big policy swings from the administration under U.S. President Donald Trump, especially on trade, security and the economy, roiled market confidence in the world's foremost reserve currency. The decline accelerated dramatically in the second quarter, when the dollar dropped more than 7% in the wake of Trump's introduction of sweeping tariffs on "Liberation Day" in early April - though some of those measures have been put on hold. On the flip side, the Swiss franc - widely seen as a safe haven currency - has become one of the best performing currencies this year, strengthening 14% against the dollar. While currency swings do not equate to reserve managers' willingness to hold them, the latest events have fuelled a debate on whether the U.S. dollar could be in danger of losing its status as the world's reserve currency of choice and the center point of the global monetary system. While some point to nascent signs of de-dollarisation, there is broad agreement that any such shift would be very slow. Looking at levels in claims, U.S. dollar claims did rise 1.4% quarter-on-quarter to $6.72 trillion, though that gain was outpaced by the euro's 2.6% rise to claims of $2.3 trillion, IMF data showed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
07-07-2025
- Business
- Zawya
Dollar wobbles near multi-year lows as investors brace for Trump tariff deadline
The dollar firmed against other major currencies on Monday, after remarks from U.S. officials offered little clarity on the outlook for tariffs, days ahead of a crucial deadline. Most U.S. trade partners face the prospect of steeper duties at the end of the 90-day moratorium on U.S. President Donald Trump's "Liberation Day" reciprocal tariffs on Wednesday. Trump clarified on Sunday that the new rates would take effect from August 1. He said he will name some dozen countries later on Monday that are receiving letters with their new, higher levies, and he threatened an additional 10% tariff on nations aligning with the "anti-American" policies of the BRICS emerging economies. "It still feels like this administration is trying to find ways to avoid going all out on fresh tariff positions. We have people talking a (lot) about it, but talking and doing are two entirely different things," said Chris Beauchamp, chief market analyst at IG. "They (the United States) saw what happened with the volatility in April, and I don't think they want to wish that again." Options data reflected that currency markets were pricing in a limited resurgence in volatility ahead of the tariff deadline on expectations that there could be further extensions on the deadline. The dollar inched up 0.2% to 0.7972 Swiss franc on Monday, near the January 2015 low it revisited in the previous week. The euro slipped 0.5% to $1.1726 having rallied over 13% so far this year. The dollar reversed an earlier decline and rose 0.54% to touch a one-week high at 145.38 yen . Investors are concerned that Tokyo and Brussels might not be able to secure deals with Washington ahead of the deadline as progress on agreements with Japan and the European Union has been slow, despite multiple rounds of negotiations. The dollar index, which measures the currency against six major counterparts, rose 0.41% to 97.363 and briefly hit a one-week high. The index extended gains from last week when data reflecting labour market resilience pushed back expectations for imminent monetary policy easing by the Federal Reserve. Still, the index is close to a 3-1/2-year trough and has declined 10% so far this year as investors questioned the safe-haven status of the U.S. currency and reassessed earlier expectations that the U.S. could be spared in the event of a global economic slowdown. On Monday, sterling weakened 0.26% to $1.36, but stayed near its strongest level since October 2021. The U.S. dollar also gained about 0.4% against the Canadian dollar . Currencies positively correlated to risk appetite, such as the Aussie dollar and the New Zealand dollar lost 0.7% and 1%, respectively ahead of monetary policy decisions in both countries in the coming two days. The Reserve Bank of Australia is widely expected to cut the cash rate by another quarter point on Tuesday, while New Zealand's central bank is predicted to hold rates steady on Wednesday. U.S. policy uncertainty weighing on the dollar "may not be as potent as in early April, but we think this correlation still matters," Paul Mackel, global head of FX research at HSBC said. (Reporting by Kevin Buckland and Johann M Cherian; Editing by Christian Schmollinger, Rachna Uppal, Gareth Jones and Barbara Lewis)
Sinar Daily
25-06-2025
- Business
- Sinar Daily
MACC completes Ismail Sabri probe, plans RM170 million forfeiture
The investigation papers have been submitted to the Attorney General's Chambers and the Deputy Public Prosecutor has agreed to proceed with the application for forfeiture of the cash. 25 Jun 2025 02:16pm Azam said the MACC had also recorded a statement from Ismail Sabri's former son-in-law, Datuk Jovian Mandagie, in relation to the investigation into the former prime minister's asset ownership. - Bernama file photo PUTRAJAYA - The Malaysian Anti-Corruption Commission (MACC) has confirmed that the investigation into former Prime Minister Datuk Seri Ismail Sabri Yaakob has been completed, and a forfeiture application for cash amounting to RM170 million is expected to be filed within the next two weeks. MACC Chief Commissioner Tan Sri Azam Baki said the investigation papers have been submitted to the Attorney General's Chambers, and the Deputy Public Prosecutor has agreed to proceed with the application for forfeiture of the cash. The investigation followed a directive for Ismail Sabri to declare his assets under Section 36(1) of the MACC Act 2009. The declaration was made on Feb 10, and the MACC is now analysing the sources of the declared assets. - Bernama file photo "The affidavit application and related documents are being prepared. It is up to Ismail Sabri to challenge our application,' he said at a press conference at the MACC headquarters here today. However, Azam clarified that no decision has been made yet regarding criminal charges against the country's ninth prime minister. Ismail Sabri had previously appeared at the MACC headquarters several times to assist in investigations into alleged corruption and money laundering involving the use and procurement of funds for promotion and publicity of the Keluarga Malaysia programme during his administration from August 2021 to November 2022. Azam said the MACC had also recorded a statement from Ismail Sabri's former son-in-law, Datuk Jovian Mandagie, in relation to the investigation into the former prime minister's asset ownership. The investigation followed a directive for Ismail Sabri to declare his assets under Section 36(1) of the MACC Act 2009. The declaration was made on Feb 10, and the MACC is now analysing the sources of the declared assets. Following that, the MACC seized RM170 million in cash in various foreign currencies - including Baht, Riyal, Pound Sterling, Won, Euro, Swiss Franc and Yuan - and confiscated 16 kilogrammes of pure gold bars estimated to be worth RM7 million, as part of the corruption and money laundering probe against the former prime minister. The seizures were made during raids at a residence and office believed to have been used as a "safehouse', based on investigations into four of Ismail Sabri's former senior officers who were detained in February. - BERNAMA
