Advertisement
Private equity has played a significant role in shaping Indi...
In today’s real estate landscape, fitness is often treated...
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
The Swiss National Bank reported a net loss of 498 million Swiss francs (CHF) for the first quarter, as a sharp decline in foreign currency investments outweighed gains from rising gold prices. Losses of around CHF 8.2 billion on equities and bonds, driven by weak global markets and expectations of higher interest rates, impacted overall performance. This was partially offset by a CHF 7.8 billion gain in gold holdings, supported by a 6.8% rise in gold prices. The central bank continues to remain exposed to global market fluctuations due to its large foreign asset portfolio.
The Swiss National Bank reported a net loss of 498 million Swiss francs (CHF 498 million), equivalent to USD 634.15 million, for the first quarter. The loss was mainly due to a significant decline in the value of its foreign currency investments, which offset gains from rising gold prices. Advertisement
The central bank recorded a loss of approximately CHF 8.2 billion on its foreign currency holdings. This decline was largely driven by weaker performance in global equity and bond markets. Bond prices fell as investors began factoring in the possibility of higher interest rates by central banks later in the year. At the same time, equity markets also faced pressure, with global indices seeing a drop during the quarter.
Market data showed that the Stoxx World Index declined by nearly 4% during the first quarter, reflecting broader weakness in international markets. This had a direct impact on the valuation of the central bank’s foreign investments, which form a large part of its balance sheet.
On the other hand, the Swiss National Bank benefited from a rise in gold prices. It reported a valuation gain of CHF 7.8 billion on its gold holdings. Gold prices increased by 6.8% during the quarter in Swiss franc terms, supporting the value of the bank’s reserves.
The central bank holds around 1,040 tonnes of gold, making it a key component of its overall asset base. Gains from gold helped cushion the overall loss but were not sufficient to fully offset the decline in foreign investments.
In recent years, the Swiss National Bank has built a large portfolio of foreign currency assets as part of its monetary policy approach to manage the strength of the Swiss franc. This strategy has made its financial results more sensitive to global market movements, particularly fluctuations in equities, bonds, and currency valuations.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
