2023-10-31 06:46:41
The Swiss National Bank on Tuesday posted a loss of 12.04 billion francs ($13.36 billion) in the third quarter, as the central bank lost money on its gold, foreign currency investments and positions in Swiss francs.
The SNB lost 9.16 billion francs on its foreign currency positions in the three months to the end of September, as bond and stock prices fell on concerns regarding interest rates. global interest that will remain high for longer.
The SNB also lost 132 million francs on the 1,040 tonnes of gold it held, due to the fall in world gold prices.
In addition, the central bank reported a loss of 2.66 billion francs on Swiss franc positions, partly due to interest paid to commercial banks.
In the first nine months of the year, the SNB paid 5.4 billion francs in interest to commercial banks for the money they deposit with the central bank on a day-to-day basis.
On Monday, the SNB said it
reduce
this interest following noting the explosion in payment costs since negative rates became positive in September 2022.
Due to the decline in these three categories, the SNB’s profit for the first nine months of the year fell to 1.7 billion francs, compared to 13.7 billion francs for the first half of the year. ($1 = 0.9014 Swiss francs) (Reporting by John Revill, Editing by Friederike Heine)
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