Eurozone citizens moving billions to Switzerland [SoberLook]
June 9, 2012 Leave a comment
Bloomberg/BW: – Switzerland saw its foreign currency reserves balloon by 66.2 billion Swiss francs ($69.5 billion) over the past month as the country’s central bank spent heavily to prevent its currency from appreciating against the euro, according to data released Thursday.
The franc is considered a safe haven for investors concerned about the euro-zone debt crisis.
The Swiss National Bank held foreign currency reserves worth 303.8 billion francs in May, an increase of 28 percent from the 237.6 billion francs in April.
“A large part of the increase in foreign currency reserves between the end of April and the end of May can be traced to the purchase of foreign currency to enforce the minimum exchange rate,” said SNB spokeswoman Silvia Oppliger.
Indeed we had a big spike in foreign currency reserves of the Swiss National Bank in May.