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Swiss Central Bank, reports $47 Billion Quarterly Loss!

The Swiss central bank lost about $47.4 billion in July through September!

The volatile markets knocked the huge stash of overseas investments it has built up in recent years trying to cap the value of Swiss franc.

The eurozone crisis and later the pandemic spurred a rush into the franc, which is seen as a haven asset.

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Swiss Bank Quarterly reports indicate a significant loss on the markets

The Swiss National Bank tried to offset the resulting upward pressure on its currency by creating francs, which it then used to buy large quantities of foreign shares and bonds.

The interventions effectively turned the SNB into a major asset manager, with the value of its holdings subject to swings in currencies and asset prices.

The SNB can always print more money and isn’t under pressure to sell its foreign holdings at a loss. Still, the losses could affect payouts it is able to make to Switzerland’s central government and regional authorities.

  • The SNB said it lost 47.2 billion francs in the third quarter of 2022, taking the year-to-date losses to 142.4 billion francs, the equivalent of about $142.6 billion.

The central bank’s foreign-currency investments stood above 808 billion Swiss francs in September, up from 430 billion Swiss francs a decade ago.


Image: Swiss Central Bank