How do you reckon that should work? The assets on SNB’s balance sheet are not your assets. The 100k CHF on your bank account is not the same that the SNB has invested, is it? And why the 100k threshold? I’m very interested to understand what you mean to say.
Here is the SNB balance sheet. If I understand your logic correctly:
- You deposit 100k at your retail bank
- The retail bank deposits it at SNB (480 billion CHF deposited in total EOY 2018)
- SNB buys with it 70% bonds and 20% stocks (763 billion CHF foreign investments EOY 2018)
- Your 100k is now in the hands of the entities who sold the bonds and shares. It increases the supply of CHF and effectively lowers the buying power of the CHF and it’s exchange rate to foreign currencies. This “helps” the exports but it screws the imports and any foreign currency purchases that private holders of CHF may make.
You’re clearly joking, right? Sure, the SNB is heavily invested in bonds and a bit in stocks, but they’re the ones to profit from any appreciation of these assets, not you, right? What will happen with any profit they make once they sell these investments? Will they use it to buy off all the CHF from the market to reappreciate its value? Or will they pass on these returns to the country’s budget?