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SNB spent 25.8b francs to defend currency cap before abandoning it

Central bank abandoned policy as it was too costly for country's economy, it says in annual report

The SNB said on Thursday defending the cap would have led to an "uncontrollable expansion" of the balance sheet to several times greater than the country's annual economic output.


THE Swiss National Bank (SNB) spent 25.8 billion Swiss francs (S$37 billion) defending its cap on the currency late last year before jettisoning the policy as too costly for the country's economy, it said on Thursday.

The SNB shocked markets in January when it removed the 1.