Deposits at the SNB rose to their highest rate in two years

The Swiss central bank recorded its highest deposit rate last week at its highest level in more than two years, suggesting that it could intervene to weaken the value of the Swiss franc.

Deposits held by commercial banks at the Swiss central bank last week increased by 2.8 billion francs (2.87 billion dollars) to 586 billion francs, according to data from the central bank.

The value of the Swiss franc rose last weekend against the euro, reaching its highest level since 2017. The franc also continued its progression, increasing today from 0.1% to 1%. , 0885 franc for one euro today. The Swiss currency has appreciated 4% over the last three months, which is a headache for the SNB.

At the same time, concerns over the economic impact of the US-China trade dispute and the prospect of easing the ECB's monetary policy are putting pressure on the franc. The franc has risen 5% since last April to exceed the level of 1.1 franc for one euro. Switzerland's key interest rate hit a record low of 0.75%, while the Swiss central bank is committed to resorting to intervention mechanisms in foreign exchange markets if necessary to curb the rise. of the franc.