Switzerland converts pension pot worth 700 million Swiss Francs into physical gold
Liam Sheasby, News Editor
3 Jul 2018, 10:15 a.m.
The Swiss government has decided to convert 700 million Swiss Francs worth of pension savings from paper securities – backed by the US Dollar – into physical gold bullion to be kept in Switzerland.
The diversification of savings only accounts for 2% of government-held pension funds in the country, but it is being described as a signal for change and seen as a sign that the Dollar is too risky to use exclusively in the face of a growing trade dispute between the United States and China.
The US Dollar has recorded a strong Q2, perhaps its best since 2016 if early figures are correct, but the International Monetary Fund (IMF) has reported a decrease in the share of global currency reserves that are held in Dollars, with the Pound, Euro, and Yuan all increasing in demand to replace the Greenback. The Dollar is currently worth approximately 61.24% of all global currency reserves; down from 62.47% at the start of 2017.