Why is Switzerland's foreign exchange reserve high

1, domestic environment. Although Switzerland is a small country, its economy and finance are very stable. It is a small country in Central Europe with a population of more than 8 million, which is about equal to 1/3 in Beijing. It also lacks natural resources, but it is one of the most stable economies in the world, with a developed financial industry and advanced technology, as well as a very low unemployment rate and fiscal deficit. Except during the financial crisis, the unemployment rate in Switzerland exceeded 4%, and it was basically below 4% at other times. Now it is 3.7%, far lower than the unemployment rate of 4.6% in the United States and better than the employment situation in most countries in the euro zone. At the same time, the finance is very healthy, and there were few fiscal deficits in the past 10 years. Switzerland is very rich, with a per capita income of about $80,000 in 20 15, ranking among the best in the world.

2. Foreign environment. Switzerland is an internationally recognized permanent neutral country, which means that it will not take the initiative to wage war. At the same time, China has strict bank secrecy system, and Switzerland is considered as the safest place in the world.

3. Rich gold reserves. Switzerland itself is the world's largest gold refining base, and more than 70% of the world's gold is refined in Switzerland. According to IMF data, Switzerland's gold reserves rank in the top 10 in the world. However, due to its small population and a very high proportion of gold per capita, the Swiss franc has also shown a strong correlation with gold in the past. For example, from 2005 to 2065,438+065,438+0, the correlation coefficient between Swiss franc and gold was as high as 0.89, that is, in 89% cases, Swiss franc and gold went up and down together.

Foreign exchange reserves, also known as foreign exchange reserves, refer to foreign exchange assets held by central banks and other government agencies in various countries and can be converted into foreign currency at any time to meet the needs of international payment. Under normal circumstances, the sources of foreign exchange reserves are trade surplus and capital inflow, which are concentrated in domestic central banks to form foreign exchange reserves. The specific forms are: short-term government deposits abroad or other means of payment that can be cashed abroad, such as foreign securities, checks, promissory notes, foreign currency drafts of foreign banks, etc. It is mainly used to pay off the balance of payments deficit. When a large number of domestic currencies are sold, foreign exchange reserves are used to buy domestic currencies to intervene in the foreign exchange market and maintain the exchange rate of domestic currencies.