Swiss National Bank (SNB)

Swiss National Bank (SNB) began its work by opening representative offices in five cities in the country - Basel, Bern, Geneva, St. Gallen and Zurich. In 1903 the national advisor to the government, Scherrer-Fuller, proposed a bill to establish a central bank of its own in Switzerland. A federal law on the National Bank was passed on October 6, 1905, and took effect on January 16, 1906. June 20, 1907. The bank now also has offices in Lausanne, Lugano and Lucerne.

Functions of the Swiss National Bank

According to the Federal Law on the Swiss National Bank, the Swiss central bank is a joint stock company with a special status and is governed by special provisions of federal law. 55% of its shares are owned by public institutions, the remaining 45% are traded on the stock market and owned by individuals. The share capital of the Swiss National Bank is about 50 million Swiss francs.

The Board of Governors of the Swiss National Bank and the executive body is the. The board is responsible for the implementation of the general monetary policy and asset management strategies of the bank.

As an independent central bank, the Swiss National Bank conducts monetary and foreign exchange policies that serve the general interest of the country; it is governed with the participation and supervision of the Confederation. The NBS generates sufficient foreign currency reserves from its revenues; part of these reserves are held in gold. The net profits of the Swiss National Bank go to the cantons for at least two thirds.

The main tasks of Swiss National Bank are:

• provide liquidity of the Swiss franc on the money market;
• ensure the issuance and distribution of funds, promote and ensure the functioning of non-cash payment systems;
• to manage foreign exchange reserves;
• contribute to the stability of the financial system;
• take part in international monetary and financial cooperation (for this purpose it must work together with the Federal Council in accordance with federal law);
• to provide banking services to the Confederation (while acting on behalf of the competent federal authorities).

Swiss National Bank and the Forex Market

The Swiss National Bank, its actions and monetary policy have a great influence on the activity of the CHF in the Forex market. The monetary activity of the NBS focuses on the interests of the country as a major exporter with a global reputation. That's why the central bank is zealous to maintain the national currency at an acceptable rate and does everything necessary to maintain it. For traders this means that speeches of the heads of the Swiss National Bank should be watched closely and adjust their trading at such moments.

Useful links about the work of the NBSH

• Official website of the bank: www.snb.ch
• NBS interest rate
• Swiss National Bank meeting schedule with comments
• Switzerland's national currency: the Swiss franc