What will the SNB do with all the EURO?

Since the announcement I have been asking myself what will the SNB do with EURO. I am not sure. Will they buy Bunds? In this economy?
Will they just seat on the euro? but the EURO is now hardly the best currency to be sitting on.
Will they buy US dollars? But that is intervening in the indirectly on the EURUSD market.
Honestly I do not know and I am not sure the SNB has thought this thorough.
The only solution left, joining the EURO zone, seems the most unlikely.

5 thoughts on “What will the SNB do with all the EURO?

  1. According to The Economist SNB is buying German and French bonds:

    “A report in the Frankfurter Allgemeine Zeitung suggests the cautious Swiss have been buying French and German government bonds, not Italian or Spanish (let alone Greek) debt..

    But this has had unfortunate consequences. As Mr Yu remarks


    It is highly likely that the SNB inadvertently made things worse for themselves (and everyone else); swiftly diversifying into German paper in large amounts caused periphery spreads to widen which only increased market fears and the subsequent risk aversion forced the euro lower (against the Swiss franc)”

    http://www.economist.com/blogs/buttonwood/2011/09/currencies

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