As a result of all of these factors, the current account reported for Switzerland is not a good measure for assessing trade flows and changes in the international investment position or a suitable metric on which to base monetary policy. The Swiss current account cannot be used either to assess the fair external value of the Swiss franc or to adequately reflect the risks in relation to price stability and economic development. Therefore, the SNB does not base its monetary policy on the current account. Page 13/13  High Swiss current account surplus: consequences for SNB monetary policy?
•  As we have discussed in our publications, such as our Monetary Policy Report, the current events will have dramatic effects on financial and economic activity. A contraction in the economy and a rise in unemployment are expected. •  Financial institutions and the banking sector are exposed to the shocks in liquidity and credit risk. At the same time, the banking sector is an important pillar channeling liquidity and credit support to firms and households. •  The CBC has been providing liquidity facilities to the markets since the Covid-19 first hit our country. •  Nevertheless, we have also stated that although this crisis will last longer than we originally expected, it is a temporary crisis. Moreover, the banking sector is in good shape and solvent to weather the storm. •  When crises hit our countries, systems like CLS acquire one of their most important roles. It is during these times that counterparty, and credit risks increase and a system that allows payments without any settlement risk is of extreme value for financial markets and the economy. Page 3 of 4  Central Bank of Chile July 2020  •  This crisis has created an important challenge to policymakers everywhere. In many countries, we hear that an extraordinary crisis should generate extraordinary responses. In Chile, we have indeed produced such extraordinary responses, both in size and shape.