Domestic sight deposits CHF 434.9 bn vs CHF 424.4 bn prior
Swiss sight deposits continue to nudge higher, with the latest bump being the highest reading for the year. The overall sight deposits are the highest since October last year as foreign banks appear to be moving funds into the SNB in order to avoid negative interest rate charges. After the rate cut last month here, the Swiss Average Rate Overnight (SARON) has fallen to hover around -0.03% and -0.04%. And so, reallocating reserves to the SNB with a zero rate is a better offer in that sense; although not entirely. As a reminder, banks without minimum reserve requirements can deposit up to 10 million francs in sight without paying interest.
This article was written by Justin Low at www.forexlive.com.