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The new office will have a staff of seven, mostly asset managers and some traders. It would "facilitate our round-the-clock operations on the foreign exchange markets in the event of the need to enforce the minimum exchange rate", Mr Jordan said.
The choice of Singapore is a coup for the city state as it seeks to bolster its position as a financial center. It is already the world's fourth-largest foreign exchange trading hub, after London, New York and Tokyo.
SNB is only the second central bank, after Indonesia's, to have a presence in Singapore.
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SNB considered other locations in Asia before choosing Singapore, in part because it accounts for a significant portion of Asian trade in bonds. "This fact played a crucial role in our decision," Mr Jordan said.
Singapore is a base for about 500 institutions in the asset management industry, with total assets under management of about $1 trillion, according to the Monetary Authority of Singapore.
SNB's new office is a sign of closer ties between Switzerland and Singapore even as they are increasingly seen as global rivals in the wealth management business. Last week PwC, the consultancy, forecast that Singapore would overtake Switzerland by assets under management by 2015.
Two months ago Swiss, Switzerland's flag carrier, launched direct flights between Zürich and Singapore, in part to capitalize on growing demand for business travel between the two.