Any attempt on the part of the SNB to hedge this risk would increase the demand for francs, which would run counter to its monetary policy objectives. The SNB’s risk profile therefore differs significantly from that of other institutional investors. While the currency risk (orange shading in chart 4) represents 78% of the total risk exposure of our investments, in the case of a representative Swiss pension fund, this proportion is only 16%. Due to its particular risk profile, the SNB is exposed to significant fluctuations in its investment result from one quarter to the next. Given these fluctuations, we exploit all available room for manoeuvre in order to diversify our investments. This allows us to optimise our risk/return profile and maintain the value of our reserves over the long term. To do this, we invest in equities and corporate bonds. Equities are an attractive asset class for the SNB. Their high degree of liquidity ensures the necessary flexibility in monetary matters, while their higher return potential helps to improve the risk/return profile. The SNB differs from other central banks in that it has a relatively high equity exposure (currently 20%, cf. chart 3). Our equity portfolio, which is worth more than CHF 150 billion, is highly diversified. We invest in some 6,700 corporate securities from more than 40 countries. We hold shares in companies which together account for more than 95% of global market capitalisation. Overall, our investments are denominated in some 30 currencies around the world, including those of emerging economies.

Among these, I can mention the amendments to the Constitutional Organic Law (LOC) of the Central Bank to perfect the regulations applicable to payment systems established in the country and recognize payment infrastructures in foreign jurisdictions involving local financial institutions. Other points include raising the limits for foreign investment of insurance companies, making it easier for international custodians to settle in Chile, expanding investment alternatives for the Pension Funds and the Unemployment Fund, as well as moving towards a risk-based model of supervision for such funds. About financial inclusion, one noteworthy regulatory change has been the Law that allows nonbank entities to issue prepaid cards (Law No. 20,950—2016), aimed at promoting the development and massification of electronic payments and increasing financial inclusion, along with boosting competition in means of payment. Its implementation requires that the Bank (and the SBIF) issue the rules that will regulate this activity. These, besides regulating the implementation of prepaid cards, will incorporate another series of normative improvements on the payment system in general, which should contribute to favor the development, competition and incorporation of new technologies in the field. A final change worth mentioning is the Law that will create the Financial Market Committee, which will bring about a very significant change in our country’s financial regulation and supervision structure, and whose implementation poses a major challenge for public politics. Despite these significant advances, big challenges await us.