Safe haven inflows into Switzerland are starting to unwind. According to SNB data, banks’ foreign liabilities have fallen from a peak of CHF 250bn in early 2013 to 200bn today, just 20bn above the level when the SNB imposed the EUR/CHF floor in September 2011. ‘Other investment’ in the balance of payments, which recorded nearly CHF 150bn of inflows during the Eurozone crisis, is 30bn off its peak. There is also little evidence that recent geopolitics has spurred renewed inflows. Fiduciary deposits, which should be the least price-sensitive of all foreign cash in Switzerland, have been collapsing.
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