I guess most of the possitions are open, so the losses at the end of the day could be 10 times or 100 times bigger. The £ could well be above 2.5 again....It's just down to how quickly Walli & his friends want to trash the CHF.

http://www.centralbanking.com/centra...n-ecb-analysts

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????? Just google SNB 66% of GDP, thats the article that comes up.

OK - I can find the info... Google is MY friend, after all.

Just letting you know that your link doesn't work.

Peace,

fduvall

Sorry Guys, but I can't find the article, even using various googles. Could you quote a sentence from the article so that I can re-google? Thanks!

I've found the article thanks.

It seems the 66% quoted in the article refers to the total balance sheet, and not just the increase due to the peg. According the snb website, the snb bought 44 billion euros in the quarter to the end of September.

Assuming one sixth of these were bought after the peg, that puts the monthly cost of the peg at 7 billion francs.

Assuming one half of these were bought after the peg (not unlikely), that puts the monthly cost of the peg at 22 billion francs.

I do not think it is as simple as that. SNB is doing more complicated stuff than simply buying euros, for example, currency swops which must have costs but I do not know where these are shown. Also as they roll over these currency swops by extending the period so there will (I assume) be more costs - not really an area I am familiar with.

They should be accounting for losses on the swaps as they go, of course the losses could be unlimited, at some point they may want to impose a ceiling rather than a floor!

Failed German Bund Auction today! If this gets any worse Germany is going to leave the Euro and back to the Dmark.

The SNB is completely fuct with this CHF strategy.....

At auction today 2 year Italian bonds hit 8%, doom & gloom!!

There is a solution to the EU debt problem.

The final choice for the politicians and economists is this: They will have to come to terms with the fact that, like us, all debt ultimately dies. Eventually, all debt expires. It is either done orderly by paying it off ... or not.

If it is not paid off it still dies ... and leaves the creditors with losses. The creditors in the case of the EU are big banks who sought to profit from high bond yields, but which now cannot be repaid.

The exercise that the governments of the EU (and Switzerland) and the US are now engaged in is to reimburse these big banks with money stolen from taxpayers and people who hold paper currency by printing new money thereby devaluing the currency.

The Swiss National Bank reports rise in profit to 13,5 billion.

Despite the banking and Euro crises, and a resignation, the SNB has done well!

http://www.20min.ch/finance/news/sto...ewinn-28661517

And it seems that 63% of the forum speculators were wrong too

The Peg is still holding gents

In financial matters the crowd is always wrong & looses money. Most of the people here wanted to sell $/£ to buy CHF before the peg as it was a 1 way bet. There is no such thing!

However the the CHF is right on the edge right now, once a few more Euro Zone countries start to default anything could happen.

Big invisible IF right durr
If Greece defaults, if more countries default, if the SNB can't support the peg, if there is a rush to the CHF as a safe haven again, If if if if...

It ain't gonna happen

The prop has cost 2/3 GNP with nothing bad happening, with a massive default CHF will become a safe haven, that in itself could bankrupt the SNB if they maintain the peg, of course the net result of that is what they actually want!

Seems the SNB bought 17 Billion of foreign currency last year; much less than this forum speculator imagined

A lot of the SNB profit came from their gold revaluation so that could quickly turn around

The euro has risen sharply in the last couple of hours; presumably based on positive rumours about Greece? The last deadline for the bond swap was today so we are on the line - unless they can change the date again

It was only a spike. It has dropped back again.

Not good times for national central banks, announced today;
Sharp fall in profits (-75%) at Germany’s Bundesbank after substantially increasing reserves set aside to cover risks associated with the European Central Bank’s money printing & lending