In July 20227 the ECB decided to include climate change considerations in the corporate bond purchases in its monetary policy portfolios, tilting these holdings towards issuers with better climate performance. Moreover, it decided to include these climate considerations in the assets it accepts as collateral in its provision of liquidity to credit institutions. Requirements on the disclosure of information on private sector assets have also been set in place as an additional criterion for accepting collateral assets. 7  See the ECB press release of 21 July 2022: “ECB takes further steps to incorporate climate change into its monetary policy Operations”. https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.pr220704~4f48a72462.en.html  Own portfolios Second, I would like to highlight that central banks are working to incorporate sustainability principles into their own portfolio management. A significant number of NGFS members8 are either planning or have already begun to consider the adoption of sustainable and responsible investment practices in the management of the portfolios in which they are directly involved, such as, for instance, their own portfolios. A growing number of central banks are implementing green bond investment strategies, often with specific purchasing targets.
The positive market sentiment on the European markets has defied both negative reports from the real economy and various political crises, even those in major member states such as Italy. The lower interest rates have improved the growth outlook in the euro area and opened up a time window for structural reform. A certain degree of calming also occurred for the Swiss franc exchange rate. Demand declined for investments which were seen as safe havens, such as the Swiss franc, with the result that foreign currency purchases to defend the minimum exchange rate have not been necessary for over a year. However, investors remain cautious, as can be seen in chart 1. First, the exchange rate did not perceptibly move away from the CHF 1.20 level until January 2013, in other words, after many months of declining risk premia. Second, the Swiss franc has not weakened fundamentally against the euro during the course of this year, although risk premia have declined further. Nevertheless, many market participants expect a renewed depreciation in the Swiss franc in view of the progress in the euro area. The value of the Swiss franc is still high at present. As can be seen in chart 2, the trade-weighted, inflationadjusted exchange rate for the Swiss franc, for instance, is currently about 10% above its long-term average. The minimum exchange rate continues to prevent an undesired tightening of monetary conditions should the upward pressure on the Swiss franc intensify once again in view of the current uncertainty.