Traders are starting to turn to the Swiss franc as the top choice for funding carry trades instead of the yen, potentially alleviating pressure on the Japanese currency.

submitted by Cancelthis from self.Options

https://finance.yahoo.com/news/state-street-citigroup-see-franc-103314791.html

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newinsightfulfun

[–]Cancelthis[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

In regular language :

Borrowing from the central banks in Japan has become just a bit harder.

Most likely, in simple language, due to giant losses in holdings of 10, 20, and 30 year Treasury debt.

See the losses stated of the Federal Reserve.

[–]Cancelthis[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Next question :

Where did the Swiss central banks get so much cash ?

Answer :

Their gold holdings, courtesy of the Federal Reserve programs.

And of course, courtesy of large scale borrowing from the Federal Reserve banks during the UBS and Credit Suisse collapse.