Profile image
By Hang the Bankers
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Switzerland’s central bank just lost $52 billion

Saturday, August 8, 2015 12:50
% of readers think this story is Fact. Add your two cents.

(Before It's News)

The Swiss Franc is getting crushed.

Most banks around the world couldn’t survive losing $50 billion in six months. But most banks don’t print their own money.

The Swiss National Bank, Switzerland’s central bank, announced on Friday that it suffered a first-half loss of 50.1 billion Swiss francs ($52 billion), the vast majority of which was from the decline in value of its holdings of euros.

Switzerland mountain range

The reason the bank held so many euros was that for several years, the bank maintained a peg against the euro, wherein it would not allow the value of the franc to rise above 1.2 euros, to prevent an expensive Swiss Franc from hurting the Swiss economy.

When the central bank lifted the peg earlier this year, it sent the value of the Franc soaring, and the value of its euro holdings falling. The central bank also lost money on its gold reserves, as the shiny metal has taken it on the chin of late.

Luckily for the Swiss National Bank, it can’t actually become insolvent, since it can simply print francs to cover any losses it suffers. The announcement caused the value of the Swiss Franc to tumble, falling as much as 0.4% against the euro on Friday.

Switzerland national bank swiss franc



Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.