part unabated. not least, this is probably attributable to the extensive investment requirements worldwide and the associated high level of liquidity on the part of the investors. this large requirement for high - risk investments originates from the dynamic growth rate that has prevailed for some time now, a high savings ratio worldwide, the globalisation and liberalisation of the financial markets as well as the increasingly professionalised asset management by private, government and institutional investors. the durability of the valuation of high - risk investments is extremely difficult to assess, since valuations depend on subjective expectations of future earnings, discount rates and volatilities. the latest turbulence is a salutary reminder of the risks, however. in the past, risk premiums at levels lower than ever recorded before, rapidly rising prices for many high - risk investment categories and hectic activity in the area of company acquisitions have been signs of developments that were not sustainable in the long run. therefore, market participants should not allow themselves to be distracted by the short - lived nature of financial market setbacks so far and simply extrapolate the favourable market trends of the past few years into the future. the steady rise in the prices of high - risk investments, the low risk premiums and low volatilities might possibly even have an influence on the external value of the swiss franc. let me comment on this statement in a little more detail. in international currency portfolios, the swiss franc has always been a safe haven currency. in the past, this was reflected in the fact that the swiss franc rose against other investments when the situation was uncertain. thus, the swiss franc took on a kind of insurance function and many investors held swiss franc investments to protect themselves against political and economic crises. just as the swiss franc is particularly attractive as a safe haven in stormy conditions, there is little interest in the swiss franc when the weather is calm. due to the very low level of risk awareness and risk aversion at present, the demand generated for hedging and thus for swiss francs is weak. however, in the past, phases of calm weather in foreign exchange markets were repeatedly interspersed with stormy periods. therefore, financial market participants and other market players with exchange rate exposures should remain aware of the exchange rate risks they are incurring.

thomas jordan : currency reserve adjustments, the sic payments system and financial market developments introductory remarks by mr thomas jordan, member of the governing board of the swiss national bank, at the half - yearly media news conference, berne, 14 june 2007. * * * in my remarks, i would like to address three topics. first, i will speak about the adjustments in the composition of our currency reserves. then, i would like to comment on the swiss interbank clearing ( sic ) payment system and its twenty years of existence. at the end, i will say a few words about developments in the financial markets. 1. adjustments in the composition of currency reserves the swiss national bank is adjusting the composition of its currency reserves. before the end of september 2009 it will sell 250 tonnes of gold and increase its foreign exchange reserves by a corresponding amount. the overall level of currency reserves will remain unchanged. the gold sales fall within the bounds set by the second gold agreement of 8 march 2004, in which the central banks of the eurosystem, plus the sveriges riksbank and the swiss national bank, agreed to limit their gold sales over a period of five years, beginning on 28 september 2004. the gold agreement specifies that annual sales by all signatories may not exceed 500 tonnes and that the total sales volume over this period shall not amount to more than 2, 500 tonnes. for the gold sales it was planning, the snb was allocated a quota not claimed by other central banks that were party to the agreement of 2004. the snb has chosen an approach for its gold sales that will avoid market unrest, with regular sales transactions. the swiss national bank holds currency reserves in the form of foreign currency and gold, thereby ensuring that it has room for manoeuvre in its monetary policy at all times. as a result of the sharp rise in the price of gold, the proportion of the currency reserves held as gold has increased by about a quarter since mid 2005, from 33 % to the current level of 42 %. the purpose of the snb's gold sales is to rebalance the composition of currency reserves with respect to its monetary policy requirements. moreover, by reducing its gold reserves and increasing its foreign exchange reserves, the overall risk on snb assets will decline. once the sales have been completed, the swiss national bank's gold holdings will amount to some 1, 040 tonnes. 2. swiss interbank clearing ( sic ) to celebrate its 20th anniversary over the next