The purchase programme alone cannot solve the crisis. However, it has significantly reduced tail risks, such as the exit of one or several countries from the monetary union, and it buys governments more time to implement fiscal consolidation and structural reforms. The affected countries have already made some concrete progress in this regard. However, it is clearly too early to relax our guard. The global economic situation is still fragile and the way out of the crisis in Europe is long and arduous. In many countries – not just in Europe – there are still a number of unanswered questions with regard to the medium-term growth outlook and the sustainability of public finances. And while we expect the global economy to recover gradually this year and the Swiss economy to grow by 1–1.5%, considerable uncertainties remain. The Swiss franc is still high, even at today’s level. In view of the fragile international environment, the downside risks for the Swiss economy remain substantial. In particular, the threat that the franc could suddenly come under upward pressure again has not been averted. The minimum exchange rate is an important instrument in helping to prevent an undesirable tightening in monetary conditions. The SNB will therefore continue to enforce the minimum exchange rate with the utmost determination and, if required, is  2  BIS central bankers’ speeches  prepared to buy foreign currency in unlimited quantities for this purpose. It stands ready to take further measures at any time.
Each bar stored abroad has a bar identification and remains the property of the SNB. The availability of our gold holdings is fully guaranteed at all times. As with many other central banks, the SNB has never made the storage locations public. The SNB reviews the geographic allocation of its gold reserves periodically and adjusts it if necessary. In addition to security considerations, avoiding public discussions when gold is being relocated was one of the reasons why storage locations have so far been treated confidentially among central banks. However, the SNB is aware that there has been a growing need for transparency in our population in the last few years. We have therefore decided to provide more detailed information in this matter. This is the only way for us to rectify the misinformation and misconceptions with regard to storage locations which have increasingly surfaced. 4  BIS central bankers’ speeches  Of our 1,040 tonnes of gold, more than 70% – and thereby the overwhelming proportion – is stored in Switzerland. The remaining 30% is distributed between two countries. Roughly 20% of the gold reserves are kept at the central bank of the United Kingdom, and approximately 10% at the central bank of Canada. The SNB has been storing gold exclusively in these countries for over ten years. A number of clearly defined criteria are used when selecting countries for gold storage. First, adequate regional diversification and good market access for the storage of gold must be ensured.