"A local presence will allow the SNB to extend its coverage of markets in Asia, and will facilitate its round-the-clock operations on the foreign exchange market "
- the Swiss National Bank
The Swiss National Bank will open its branch in Singapore in order to better manage its growing foreign exchange reserves and assets in the Asia-Pacific region. It will be the bank's first branch abroad, and the round-the-clock management of the SNB's foreign exchange reserves is needed to defend the safe-haven Franc from appreciation. The SNB has been selling francs for other currencies, mostly euros, since September 2011 to avoid the risk of deflation and a recession, when investors rushed to buy Swiss francs as a safe haven from the Eurozone's debt crisis. The other reason for opening a new branch is that the bank is planning to diversify its assets, while Asia's economic importance has grown considerably during the last several years.
"Against the background of the sharp expansion in foreign exchange reserves and the growing importance of Asian financial markets, the Swiss National Bank (SNB) has decided to open a branch in Singapore, to ensure a more efficient management of its assets in the Asia-Pacific region," the SNB Bank said.
"A local presence will allow the SNB to extend its coverage of markets in Asia, and will facilitate its round-the-clock operations on the foreign exchange market for example, to enforce the minimum exchange rate."
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