Record-high FX reserves prompt new questions for SNB

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Swiss National Bank

Switzerland’s foreign currency reserves have climbed again, reaching a new record high of SFr714.3 billion ($734 billion), in July, the Swiss National Bank (SNB) announced on August 7. Swiss forex reserves now represent 108% of national GDP.

The latest increase is the result of the appreciation of its euro-denominated assets – some 40% of the total, an SNB spokesman said.

“The danger of a large exposure to the euro is that if the currency falls the SNB would see its reserves dwindle, and that