BERN (Reuters) - The Swiss National Bank has all the tools it needs to conduct policy, Chairman Thomas Jordan said on Friday, dismissing a campaign that would make the SNB alone responsible for creating the country’s money.
“We are convinced we have all the instruments we need to implement our monetary policy. We don’t need the sovereign money initiative. What we have functions quite well. We don’t want to experiment where we don’t know what the final outcome would be,” he told the SNB’s annual shareholder meeting in response to a question.
A Swiss group pushing the initiative has collected enough signatures necessary to put the matter to a popular vote. The group says the current fractional reserve system - where banks “create” money each time they issue loans - is unstable because it is secured by reserves representing just a fraction of the currency actually created by the SNB.
Reporting by John Revill; Editing by Michael Shields