Central Bank of Swiss

BACKGROUND

Name of the country : Switzerland

Capital: Bern

Official language: German, French, Italian, Romansh

President: Simonetta Sommaruga

Population : 8,211,700

GDP (nominal) : $688,434 billion (estimate 2015)

History.

The central bank of Switzerland known as The Swiss National Bank (SNB). This bank has established in 20 June 1907. It have two head offices one in Bern and other in Zurich. The currency of Switzerland known as Swiss Franc (CHF). Currently, the chairman of the governing board of the Swiss National Bank was Thomas J. Jordan. The Swiss National Bank conducts the country’s monetary policy as an independent central bank.

Goals and responsibilities.

The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by the Constitution and statue to act in accordance with the interest of the country as a whole. The basic governing principles of the National Bank are contained within article 99 of the Federal Constitution, which deal matters of monetary policy. The prime function of the National Bank is; to pursue a reliable monetary policy for the benefit of the Swiss economy and the Swiss people.

i) Cash supply and distribution.

The National Bank is entrusted with the note- issuing privilege. It supplies the economy with bank notes that meet high standards with respect to quality and security. It is alsp charged by the confederation the task of coin distribution.

ii) Implementation of monetary policy

The SNB implements its monetary policy by steering liquidity on the money market and by setting interest rate on its sight deposit account,thereby influencing the general interest rate level.

iii) In the field of cashless payment transactions, the National Bank provides services for payments between banks. This are setteld in Swiss Interbank Clearing (SIC) system via sight deposit accounts held with the National Bank.

iv) Asset management

The SNB manages the currency reserve, the most...