Swiss National Bank reports $143 billion loss, its largest ever

Most of the loss came from its holdings in foreign currencies.

By Daniel J. Graeber

By Daniel J. Graeber   1/3The loss, stemming from declines in the value of its holdings in foreign currencies, is the largest in the history of the Swiss National Bank. Photo courtesy of the Swiss National Bank.

Jan. 9 (UPI) — The Swiss National Bank said Monday it was anticipating a $143 billion loss for 2022, the steepest loss in the bank’s 116-year history.

The bank said this is only a provisional calculation for 2022 performance. Though it took a hit last year, the bank said it was expecting a $4.5 billion profit from its gold holdings.

Its positions in gold could be supportive during the new year, according to a research note from Denmark’s Saxo Bank. Analysts there said precious metals in general are in vogue.

“Gold’s newfound resilience and momentum from December has been carried over to January as investors seek shelter from what has been forecast to be another challenging year, especially for those with exposure to equities,” analysts wrote.

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Elsewhere, however, the bank took a good hit on currencies. It estimates the loss from the valuations of its holding in foreign currencies came at around $140 billion. As a result, it will not be able to make its usual payouts.

Analysis from Bloomberg news finds the staggering loss from the Swiss bank is a reflection of how central banks are adjusting to the new financial environment of higher inflation and a war premium for major commodities stemming from the conflict in Ukraine……..more here

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