The US Dollar is losing its hegemony over international financial weight. It’s a matter of time until a different currency replaces it.
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Ok so there is a chart in this article that shows that the EUR share of SNB FX reserves has increased, but essentially back to where it was in the pre-Covid era (the chart only goes back to 2017, so can’t say more than that).
Historically, the SNB has been primarily concerned with the EURCHF cross rate as the EU is Switzerland’s primary trade partner, so that rate will be most impactful on its trade competitiveness. The increase of USD reserves in the post-Covid (until now) more shows the time relative weakness of the EUR. The current state seems more to be a normalization than a paradigm shift.
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The US Dollar is losing its hegemony over international financial weight. It’s a matter of time until a different currency replaces it.
Ok so there is a chart in this article that shows that the EUR share of SNB FX reserves has increased, but essentially back to where it was in the pre-Covid era (the chart only goes back to 2017, so can’t say more than that).
Historically, the SNB has been primarily concerned with the EURCHF cross rate as the EU is Switzerland’s primary trade partner, so that rate will be most impactful on its trade competitiveness. The increase of USD reserves in the post-Covid (until now) more shows the time relative weakness of the EUR. The current state seems more to be a normalization than a paradigm shift.