Swiss foreign reserves hit record

The Swiss central bank held a record level of foreign reserves in July as it held back the Swiss franc’s strength against the euro. For the third month in a row, Switzerland added tens of billions to its accounts, with total holdings up from SFr365bn (£241bn) in June to SFr406bn. The national bank has pegged its currency at SFr1.20 per euro since September last year and has promised to continue this tactic, but with rising interest in the country, seen as a safe bet by investors, the central bank is being forced to buy more funds each month. The Swedish krona and Australian dollar are believed to have benefited from the bank buying euros and selling them for other currencies. The balance sheet has risen 70 per cent since April.