ZURICH, Dec 19 (Reuters) - The Swiss National Bank said on Monday its Bank Council approved allocating 4.6 billion Swiss francs ($4.49 billion) to 2016 currency reserve provisions, raising the provisions to 62.8 billion francs.
“The annual allocation will continue to be determined on the basis of double the average nominal economic growth rate over the previous five years. However, a minimum annual allocation of 8 percent of the provisions will now also apply,” the SNB said in a statement.
With nominal GDP growth over the last five years averaging 1.9 percent, the minimum rate of 8 percent will be applied for 2016, the central bank said.
$1 = 1.0252 Swiss francs Reporting by Joshua Franklin; Editing by Michael Shields