"Switzerland's decision to stem the appreciation of the Swiss franc has led to a de facto recycling of funds from the eurozone periphery to its core"
- Standard & Poor's
The Swiss National Bank has bought around 80 billion euros of sovereign debt in the euro area's core countries during the first seven months of 2012, to stem the appreciation of national currency, Standard & Poor's said in a report on Tuesday.
"Largely unnoticed, Switzerland's decision to stem the appreciation of the Swiss franc has led to a de facto recycling of funds from the eurozone periphery to its core, via the Swiss National Bank," the S&P report said.
In a separate report, the SNB Chairman Thomas J. Jordan said Swiss franc is expected to depreciate over time, while negative inflation in Switzerland should end in 2012 and country is not expected to fall into recession. At the same time, SNB Chairman expects Eurozone to grow in 2013.
"Unfortunately, it's probably still too early to tell whether this is in fact the case or not," said SNB Chairman Thomas Jordan.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies added 0.25 per cent to 6,613.45. The broader Swiss Performance Index added 0.18 per cent to 6,112.79.
© Dukascopy Bank SA