The Switzerland Central Financial institution mentioned it recorded a lack of over three billion Swiss francs or $3.5bn final yr on the again of its rate of interest hikes.
The loss, as reported by the AFP on Tuesday, means the nation’s authorities and cantons won’t obtain their annual pay-out from the Swiss Nationwide Financial institution for a second yr in a row.
“Like different central banks worldwide, the SNB has raised its rates of interest out of damaging territory to tame inflation.
“This meant that the SNB needed to pay curiosity to banks parking their cash on the central financial institution,” the financial institution mentioned.
Beforehand, it was the banks that needed to pay curiosity on the cash they needed to deposit on the SNB because the charges had been in damaging territory.
The SNB mentioned, “It had a lack of 8.5 billion francs on nationwide foreign money positions final yr. It made a revenue of 4 billion francs on overseas foreign money positions.
“Its gold holdings recorded a valuation acquire of 1.7 billion francs.
“The central financial institution posted a document lack of 132.5 billion francs in 2022.
“It can submit definitive figures for 2023 on March 4.”
AFP
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