For central bankers there is such a thing as too much money. In many countries, capital inflows have powered economic growth, but have also caused a currency appreciation headache. In response, policy-makers have intervened to weaken their currencies, sparking concern over the huge foreign exchange (FX) reserves now languishing on national balance sheets.
Little more than a year ago, the Swiss National Bank (SNB) announced it would buy as many euros as necessary to prevent its currency appreciating beyond SFr1.20 against the euro, after unprecedented safe haven flows out of Europe pushed it to near parity against the eurozone currency.