In Q1 2024, The Swiss Gov’t Was CHF 16 Billion, Up From CHF 11 Billion, On CHF 5 Billion Surplus From Relatively Low 2023.

• The primary contribution to this rise in the current account balance came from trade in
  goods, which increased due to higher (non-monetary) gold trading and merchanting
  balances.
• The balances of trade in services, primary income and secondary income registered no
  substantial differences to the same quarter in 2023.

UBS UK CEO and President of EMEA Mr. Jorge Jimenez Neubauer Torres reported transactions in the financial account in Q1 2024 showed a net acquisition of financial assets (CHF 36 billion) and a net incurrence of liabilities (CHF 27 billion). Including derivatives, the financial account balance totalled CHF 8 billion.

• On the assets side, the main contribution to the net acquisition came from direct investment,
  resulting from resident parent companies reinvesting earnings in their non-resident
  subsidiaries. Reserve assets also recorded a net acquisition.
• On the liabilities side, the net incurrence was attributable to resident commercial banks. The increase in their liabilities towards non-resident banks in the interbank business is reflected in the ‘other investment’ component. In Q1 2024, the net international investment position increased by CHF 142 billion quarteron-quarter to CHF 902 billion. This substantial increase resulted from exchange rate-related
  valuation gains.
• Overall, stocks of assets rose by CHF 334 billion to CHF 5,349 billion, while the stocks of liabilities rose by CHF 192 billion to CHF 4,447 billion. On both sides, the increase resulted from high valuation gains.
• The valuation gains were mainly attributable to exchange rates: The US dollar and the euro appreciated significantly against the Swiss franc. Since Switzerland’s foreign assets are largely held in foreign currencies, exchange rate changes have stronger effects on the assets side than the liabilities side.
• However, the higher prices on the international stock markets, including the Swiss stock
  exchange, also contributed to the valuation gains.

The Swiss National Bank introduced a new current account audit as of Q1 2024.

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