Following comments from the Swiss National Bank, reducing the group of sight deposit account holders that are exempt from negative interest rates, has sent Swissy tumbling...
The rush out of swiss francs reignites
As Bloomberg reports,
Swiss National Bank says its reduced the group of sight deposit account holders that are exempt from negative rates.
Says negative rates to apply to sight deposit accounts held at SNB by enterprises associated with federal govt, including pension fund PUBLICA.
Accounts will have minimum exemption threshold of CHF10m, to which negative interest does not apply.
Accounts of cantons of Geneva and Zurich, City of Zurich to be wound up.
Account of SNB pension fund will also be subject to negative rates.
Only sight deposit accounts to be exempt from negative interest will be those of central Federal Administration and the compensation funds for old age and survivors’ insurance, disability insurance and fund for loss of earned income.
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One wonders if The SNB has licensed Sarao's "spoofing" algo... EURCHF weakness (+100pips to 1.036) seems to imply the SNB's hope is that Sight Deposits are reduced (as every central bank hopes... spend don't save)...