Total sight deposits at the Swiss National Bank (SNB) were CHF 440.4 billion for the week ending 21 March, showing a slight decline from CHF 440.7 billion previously.
In contrast, domestic sight deposits increased to CHF 449.2 billion from CHF 448.5 billion in the prior week, reflecting minimal changes in the overall sight deposits week-on-week.
Liquidity Conditions Remain Stable
The modest reduction in total sight deposits at the Swiss National Bank suggests that liquidity conditions remain relatively stable, without any clear indications of stress. A shift of CHF 0.3 billion in SNB-held deposits does not signal abrupt movements in funding demand or sudden changes in interventions. However, the rise in domestic sight deposits indicates that commercial banks hold somewhat higher reserves, pointing to adjustments in their cash positions rather than broader monetary fluctuations.
Such minor fluctuations in weekly data do not suggest a systemic shift, but they offer insight into how financial institutions are managing liquidity. The increase in domestic accounts, even as SNB-held totals dipped, implies that market participants are maintaining reserves while adapting to prevailing conditions. Sight deposits can be a useful indicator of short-term liquidity preferences, and subtle changes may reflect shifts in how institutions react to policy expectations.
While foreign exchange interventions are always a consideration in Switzerland, there are no clear signals of heightened activity based on this data alone. Previous interventions often corresponded with sharper movements in these metrics, making this week’s readings relatively uneventful. If liquidity management trends shift in the coming weeks, a more noticeable movement in SNB’s balance sheet figures would provide a better indication of policy direction.
Monitoring Future Trends
Given the current outlook, traders monitoring monetary policy should remain attentive to whether these deposit trends persist. A sustained decline in SNB-held balances alongside a continued increase in domestic holdings could suggest an adjustment in how financial institutions manage their reserves. For now, the overall stability in deposits does not point to any immediate pressures in Swiss franc liquidity.
