The value of the foreign currency reserves of the Swiss National Bank decreased to 427.2 billion francs in December from 427.4 billion in November. The decrease in reserves of 200 million francs last month, gives reason to believe that the bank has reduced its intervention in the forex market in order to remain the franc below 1.20 per euro as increased efforts to overcome the eurozone debt crisis contributed to the euro growth.
The decline in the value of foreign currency reserves generally represents their ratio to GDP of about 70%, with 10% less before the financial crisis in 2008.
The top limit for the pair EURCHF was introduced in September last year after the Swiss franc rose nearly to parity against the euro, the currency of one of the major trading partners, adding pressure on Swiss exporters and the economy.
The Swiss currency slid below against the euro at the end of the last year, after Credit Suisse Group AG (CS) and UBS AG (UBS) announced that they will begin to motivate customers to exchange francs in some of their accounts.