Swiss Financial System
SNB Repo Operations
SNB Repo Operations sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Definition
SNB Repo Operations sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Operating mechanism
In an SNB repo, securities and Swiss-franc liquidity are exchanged temporarily. Liquidity-providing repos credit a counterparty’s sight deposit account against eligible collateral; absorbing repos work in the opposite direction.
Why markets care
The instrument affects the path from the policy rate to SARON, repo pricing, bank liquidity and ultimately broader CHF funding conditions. Its importance therefore depends on both price and quantity.
What to monitor
Follow SNB operational announcements, sight-deposit data, SARON, repo conditions and changes to remuneration, collateral or counterparty rules. The framework can change without a change in the headline policy rate.