Switzerland’s central financial institution chief gave a vote of confidence to US authorities bonds even after the world’s greatest economic system was stripped of its final prime credit standing by Moody’s.
“US Treasuries are very liquid,” Swiss Nationwide Financial institution President Martin Schlegel stated Monday in Lucerne. “There is currently no alternative to them and it’s not foreseeable that there will be an alternative.”
The SNB has amassed greater than 700 billion Swiss francs ($838 billion) value of foreign currency, with virtually two thirds of that held in authorities bonds. Schlegel stated that these holdings embody US Treasuries, however didn’t specify what quantity.
Requested about how the US downgrade at Moody’s on Friday will have an effect on SNB funding choices on its reserves, Schlegel highlighted that “we look at the ratings — but typically, single ratings have no effects on the asset allocation.”
This story was initially featured on Fortune.com
