BNS foreign exchange reserves stable in September

Context

TL;DR

• BNS: foreign currency reserves at 771 billion
• In September, +0,4 billion compared with August
• Euro +0,9%, dollar +3%; together about 80%

Key facts

• Foreign-exchange reserves: 771 billion francs
• Monthly change: 0,4 billion more
• Total reserves, excluding gold: from 782 to 783 billion
• Exchange rates at the end of September: euro 0,9458 and dollar 0,8328 francs
• Share of the euro and dollar: around 80% of foreign-exchange reserves

At the end of September, the foreign-exchange reserves held by the Swiss National Bank stood at 771 billion francs, 0,4 billion more than in August. The SNB therefore describes the monthly movement as essentially stable. The information was published on the institution's website; the text is preceded by the attribution (Keystone-ATS).

The SNB's monthly figure

The figure relating solely to foreign-exchange reserves should be considered alongside that for total reserves, excluding gold. This item went from 782 to 783 billion francs. The source gives both amounts, but relates them to two aggregates named differently: to read the bulletin without confusing them, the figure of 771 billion must be kept separate from that of 783 billion.

The SNB's message does not attribute the September figure to a single cause. The institution notes that fluctuations are not unusual and that they often have to do with developments in foreign-exchange markets. It adds that they may also be the result of monetary-policy measures. The reference to the markets and monetary policy explains why the month-on-month comparison should not be read as a simple isolated addition or subtraction.

The statistics show a strengthening of the two currencies that together account for around 80% of foreign-exchange reserves. The euro rose to 0,9458 francs from 0,9378 at the end of August, a change of 0,9%. The US dollar went from 0,8089 to 0,8328 francs, strengthening by 3%. To follow the comparison between the euro and the franc at the two points in time, one can use comparatore CHF/EUR, keeping the exchange rate and the amount of the reserves distinct.

The historical context mentioned by the source also concerns the institution's leadership: since October 2024, the executive management has been chaired by Martin Schlegel. For several years, the SNB purchased large quantities of foreign currency, especially after abandoning, at the beginning of 2015, the minimum exchange-rate threshold against the euro. These are the elements given to place the monthly figure in context, without adding a new decision to the communiqué.

Operational details

Practical reading

The most useful way to read the figures is to separate the change in reserves from the change in exchange rates. In the first case, one looks at the move from August to September; in the second, at the quotations of the euro and the dollar expressed in francs. The source places the two pieces of information in the same framework, but does not attribute the movement in reserves to a single explanation: it refers to foreign exchange markets and, alternatively, monetary policy measures.

Three aspects not to confuse

The comparison shows that stability in the amount does not mean an absence of movement in exchange rates. Foreign currency reserves increased by 0,4 billion, while the euro and the dollar recorded the changes indicated by the statistics. The reader should therefore avoid substituting one number for the other: 771 billion is the value of foreign currency reserves; 0,9458 and 0,8328 are quotations in francs.

The excluding-gold entry also requires attention. The move from 782 to 783 billion refers to total reserves excluding gold, not to the same row as foreign currency reserves alone. This is a lexical and numerical distinction already present in the BNS communication, useful for comparing August and September without adding up different items.

The data on the two main exchange rates helps explain why the source refers to foreign exchange markets: the euro and the dollar together account for about 80% of foreign currency reserves. This data alone is not enough, however, to establish which component produced the change of 0,4 billion, because the BNS also mentions monetary policy measures. The causal relationship is not specified for September.

For those who live or work in Switzerland, the practical use of the news is therefore a systematic comparison, not a forecast. To separate monetary data from daily expenses, one can consult costo della vita in Svizzera.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Reading procedure

To use the communication from the BNS in a verifiable way, it is advisable to turn the text into a comparison sheet. The approach most faithful to the source consists of retaining the entries published by the institution, always indicating the period, and separating foreign exchange reserves from the total reserves excluding gold. This approach avoids mixing data that the source presents under different names.

A four-step sheet

1. Start with the period. Write September as the month of the observation and August as the comparison period. Next to the main figure, note that the amount of foreign exchange reserves is expressed in billions of francs and that the indicated monthly difference is 0,4 billion.

2. Separate the entries. Create one row for foreign exchange reserves and one for total reserves, excluding gold. Associate the change from 782 to 783 billion with the latter. The separation avoids using the total excluding gold as though it were the same measure as foreign-currency assets.

3. Record the exchange rates. Enter 0,9458 francs for the euro versus 0,9378 at the end of August, with a change of 0,9%; for the US dollar, 0,8328 versus 0,8089, with a strengthening of 3%. Add the combined share: the euro and dollar account for approximately 80% of foreign exchange reserves.

4. Leave the explanation open. In the sheet, indicate that fluctuations may be related to foreign exchange markets, but also to monetary policy measures. The text does not link the September movement to a single operation. The historical note on massive foreign currency purchases and the abandonment of the minimum exchange rate with the euro at the beginning of 2015 should be kept as context, separate from the monthly figure.

The result is a controllable comparison, not a personal estimate of the exchange rate or reserves. To apply this reading to a personal calculation, use calcolatore stipendio/imposte.

Source: swissinfo.ch