With interest rates close to zero and a high Swiss franc, the minimum exchange rate is still the key monetary policy instrument for the SNB. Our monetary policy decisions have caused the SNB balance sheet to increase considerably. Due to the size of the balance sheet and the uncertainty on the capital markets, annual results are expected to be volatile in the foreseeable future. That is why we cannot provide you with any forecasts of the SNB’s future annual results. We are certainly very aware that the lack of a dividend is painful for many shareholders. However, as you know, the SNB is obliged by constitution and statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of the development of the economy. The SNB is required to gear its  1  Overall, illiquid assets totalling USD 38.7 billion were taken over. The funding was as follows: The SNB granted a loan of USD 25.8 billion and UBS provided 10% or USD 3.9 billion in the form of the purchase price for the option to repurchase the stabilisation fund at a later date. The difference between the funds paid into the stabilisation fund and the total sum of transferred assets was made up of contingent liabilities which, at that point, did not require any financing. 2  In 2009, the Confederation sold the equities arising out of the conversion of these notes to institutional investors, thereby ceasing its involvement.
Over the last 10 years, MoneySENSE has reached out to Singaporeans through many  2  Prelec and Simester, “Always Leave Home Without It: A Further Investigation of the Credit Card Effect on Willingness to Pay”, Marketing Letters 12, no. 1, February 2001. 2  BIS central bankers’ speeches  channels – schools, community events, workplace talks, newspapers, TV, radio, and now increasingly the internet – to reach out in every way we can to as many Singaporeans as possible. 12. We set up a new institute last year called the Institute for Financial Literacy (IFL) which was set up jointly by MoneySENSE and the Singapore Polytechnic. This institute has helped to bring financial education to working adults, who don’t have much time, but they can attend lunchtime talks and workshops free of charge at their workplace. To date, IFL had reached out to 12,000 people. Translating knowledge into action 13. What will be our focus for the next 10 years? First, we have to recognise that financial education is not just about knowledge, but also about inculcating the right values from young, and encouraging everyone to be pro-active rather than passive about their finances. At every income level and for every family, it really pays to prepare for the future. 14. Many think that they don’t have enough time, or just say they are not interested, or that there’s too much to plan for because it’s too uncertain. But it’s precisely because life has uncertainties that we need to make plans for the future.