Swiss voters have rejected the proposal to force the Swiss National Bank to hold 20% of reserves in gold bullion. The motion was overwhelmingly rejected by 77% of the voters. The referendum was launched by the right wing Swiss Peoples Party in reaction to the SNB buying billions of devaluing euros.

In 2011 the SNB introduced a currency cap meaning it would not allow the Euro to trade below 1.20 Swiss Francs. To maintain the ratio the SNB was forced to enter the market and buy billions of dollars of euros.

Following the ECB’s decision to cut interest rates to near zero and talk of a full blown quantitative easing program the euro has fallen significantly against the U.S. dollar and the British pound. Around 50% of the SNB assets are held in euros and only 7.5% in gold. With the euro sliding the SNB has no other option than to carry on buying.

Swiss voters also rejected proposals to implement limits on immigration as well as voting against allowing new tax privileges for foreign residents.