The Swiss National Bank’s foreign-currency reserves held steady in September even as the franc gained against the euro and the U.S. dollar.
Holdings stood at 432.45 billion francs ($478 billion) last month, from 434.2 billion francs in August, the Zurich-based central bank said on its website today. The holdings, calculated according to International Monetary Fund standards at the beginning of each month, hit an all-time high of 444 billion francs in May.
The SNB, which set a ceiling on the franc of 1.20 per euro in September 2011, has amassed foreign-currency reserves equal to about three-quarters of Switzerland’s annual economic output as a result of its efforts to protect the limit.
SNB President Thomas Jordan said at the quarterly policy review on Sept. 19 that there was “no reason” to discuss an exit of the cap. The SNB, which cited the risk of deflation as its justification for the introduction of the currency ceiling, sees consumer prices falling 0.2 percent this year.
The franc, which investor seek at times of heightened global stress, gained 0.5 percent against the euro and 2.8 percent against the dollar in September.
At the end of the second quarter, the SNB held 48 percent of its reserves in euros, 27 percent in dollars, and 9 percent in yen. The bulk is held in top rated government bonds with 15 percent in equities, an allocation little changed compared with the first quarter. It will announce third quarter holdings at then end of this month.
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