Foreign currency stocks increased by around 52 billion francs and stood at 944 billion francs at the end of December 2021.
The currency reserves held by the Swiss National Bank (SNB) have continued to increase in recent years. Stocks of foreign currencies jumped by around 52 billion and stood at the end of December 2021 at 944 billion francs, according to provisional figures released on Friday by the issuing institution.
This amount exceeds the Swiss gross domestic product (GDP) by 30%.
In 2020, the surge of 120 billion in these reserves had been largely explained by the interventions of the SNB to defend the franc in the midst of the coronavirus pandemic. But last year, the increase was mainly driven by the gains made on positions in foreign currencies (shares, dividends, coupons).
Intervention in the foreign exchange market was less significant in 2021 than in the previous year. During the first three quarters, the SNB bought currencies for 8.5 billion francs.
The Swiss central bank’s foreign exchange reserves are mainly held in bonds and stocks. At the end of September 2021, 66% were government bonds, 11% other debt securities and 23% shares.
As for currencies, they are 38% of dollars and euros respectively, followed by the Japanese yen (8%), the British pound (6%), the Canadian dollar (3%) and other foreign currencies. (7%).