Swiss National Bank reports CHF50.1bn first half loss

Switzerland’s central bank posted a record loss of CHF50.1bn as foreign exchange movements inflicted hefty losses on the bank’s Euro holdings.

The Swiss franc tumbled against the euro as a result, but recovered and was trading at CHF1.0593 to the euro at 1347 BST.

The Swiss National Bank said strong fluctuations were to be expected due its result weighing heavily on gold, foreign exchange and the capital markets.

The bank said loss on foreign currency positions amounted to CHF47.2bn, while a valuation loss of CHF3.2bn was recorded on gold holdings.

Since January the Swiss National Bank removed the minimum exchange rate of CHF 1.2 per Euro which appreciated the franc.

Julius Baer head of fixed income research Markus Allenspach said there was no reason to panic.

“The outlook for a recovery in the eurozone and higher US dollar rates should lessen the demand for safe havens and facilitate the job of the Swiss National Bank going forward.”