The conversation between human and AI assistant.
Why do central banks hold Swiss Francs despite Switzerland having a relatively small economy?
Are there any downsides to holding Swiss Francs in reserve for central banks?
One downside is that the Swiss Francs do not earn interest, meaning potential opportunity costs for central banks in terms of alternative investments. Additionally, the size of Switzerland's economy means there is a limit to the amount of Swiss Francs that can be accumulated by central banks before market liquidity becomes an issue.