To: The Right Honourable Swiss National Bank President Thomas Jordan From: Athinarayanan Sanjeevraja Date: November 16, 2012 RE: Swiss National Bank Forex Reserves Challenges Suggestion: SNB Effective and Efficient Management of Forex Reserves. Good Morning Mr. President. I am writing to express that “Financial Times, London” reported that “ SNB warns on challenge of forex reserves ”. It is true that forex reserve management have inexorably raised significant challenges for SNB in recent years. If I am not mistaken, SNB foreign exchange reserves surged from CHF 50 billion at the end of 2008 to nearly CHF 500 billion in November 2012. It accounts nearly 70 percent of the GDP. SNB forex reserves expanded very rapidly in recent years due to SNB monetary policy. As you pointed out earlier “diversification is the only way for the SNB to mitigate the impact of foreign exchange fluctuations”. I agreed Mr. President because hedging the exchange rate risk is the main ca...