SNB Sight Deposits Rise Amid Battle to Keep Franc in Check

(Bloomberg) -- The amount of cash commercial banks hold at the Swiss National Bank hit a record last week, highlighting officials’ battle to keep the franc from appreciating.

Sight deposits increased by 6.9 billion francs ($7 billion) to 634.1 billion francs in the week ending April 10, data published on the central bank’s website on Tuesday showed.

With investors risk averse, the franc has been on an appreciation course this year. It’s now just shy of a five-year peak versus the euro.

The SNB said last month it was boosting intervention activity to help ensure monetary conditions remain sufficiently loose at a time when the coronavirus outbreak hampers economic activity.

Switzerland’s gross domestic product is seen slumping 4% this year, according to a Bloomberg survey of economists.

A spokesman for the SNB declined to comment on the sight deposit increase last week.

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