Since then, the SNB has had to learn to operate with floating, and to conduct an independent monetary policy. This has not always been easy, since the international environment has often been extremely instable with the result that the Swiss franc has, at times, been heavily overvalued. During the 1980s, a greater degree of monetary discipline emerged and the fight against inflation became gradually more widespread. However, the world monetary order only achieved a certain level of calm towards the end of the 1990s, when the European monetary integration project took form and monetary policies were geared towards the defence of price stability. ***** In sketching this rapid portrait of the hundred years of our history, we see how much circumstances have differed from one period to another. It is therefore fitting that we pay tribute to all of our predecessors who – often in difficult circumstances – gave of their best in order that the Swiss National Bank might fulfil its mandate. It was their prudent management of the country's business that sheltered us from the numerous monetary crises that battered so many other European states. It was they, too, whose determination made it possible for the SNB to conduct a monetary policy resolutely geared to stability. Our generation is deriving immense benefit from this heritage. Due to the courage and sacrifices of those who preceded us, we now reap the benefits of a prosperous economy and a healthy currency. Our gratitude also extends to the authorities and to the Swiss people.
Increasingly, wealthy investors the world over are looking to spread the risks and enhance the overall returns on their investment portfolios. We are seeing this search for diversification and improved returns on investment amongst sophisticated investors from the Middle East and Asia. It provides an opportunity for markets in Asia and the Middle East which can offer wealthy investors with higher expected returns at acceptable risk. The demand side of the financial equation in our two regions is equally compelling. First, there are unprecedented demand for funds to finance infrastructure projects, across the region. In Southeast Asia alone, about $ 461 billion is expected to be spent over the next 15 years to upgrade infrastructure. This is not even looking at China and India. Likewise in the Middle East - the reconstruction of Iraq and Qatar’s infrastructural plans are each expected to cost $ 100 billion. Second, besides infrastructure finance, we are seeing huge growth potential in the consumer finance sector in our two regions. It is driven by a rapidly expanding middle-class, who want better housing, cars and other big-ticket items like middle classes anywhere else in the world. For instance, India’s “consuming class” will rise from the current 30% of households to 40% by 2010. Similarly in China, the “middle class” is set to double over the next 5 years. Facilitating greater financial flows between Asia and Middle East Financial services are therefore growing rapidly in Asia and the Middle East.