Swiss National Bank reinvests in Aurora

Could we imagine the Bank of France investing in cannabis today? Its Swiss counterpart, the Swiss National Bank (SNB), has no qualms about the subject. In the first quarter, it has thus doubled its stake in Aurora, one of Canada's leading cannabis producers, to 4.2 million shares, worth €56 million at last Monday's closing price.

As Switzerland’s central bank—and thus the guardian of the country’s economic development—the SNB also invests in the stock market. The SNB does not provide any information about the companies in its investment portfolio, except for those listed on Wall Street, since the SEC, the U.S. securities regulator, requires a report quarterly to key stakeholders.

The SNB's investments are approved by the Swiss authorities, who have therefore regarded cannabis as a safe-haven asset, despite the tense situation among all Canadian producers and record losses. A sign that the issue of medical cannabis in Switzerland is nearing a resolution?

What is the current status of medical cannabis in Switzerland?

Medical cannabis is legal in Switzerland. However, access to it remains complicated. In 2019, the federal government decided to make access easier by allowing doctors to to prescribe cannabis directly. Swiss production has been very limited so far, however, and relies mainly on imports.

In March, the Swiss Parliament authorized the cultivation of medical cannabis for Switzerland and for export. The bill still needs to pass the Council of States, which was scheduled to meet on the matter during the spring session before the coronavirus pandemic disrupted the legislative calendar. By placing its trust in Aurora, the SNB could thus serve as both the driving force behind domestic production and reap the benefits once production is authorized.