Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
The Swiss National Bank reported a 15.3 billion franc loss due to dollar weakness affecting its investments. A gain in gold holdings partially offset the loss.
By John Revill
ZURICH (Reuters) -The Swiss National Bank on Thursday reported a loss of 15.3 billion Swiss francs ($18.83 billion) for the first half of the year as the weakening dollar took a big bite out of the value of the central bank's U.S investments.
The SNB made a loss of 22.7 billion francs on its foreign currency positions during in the six months to the end of June, as the dollar's slide wiped out price gains and payments when translated back to francs.
The results showed how the results of the SNB, with 727 billion francs in foreign currency stocks and bonds, are extremely sensitive to currency movements.
During the first half of the year the dollar, in which the SNB holds 37% of its forex reserves, fell roughly 12% versus the franc on concerns about U.S. debt and President Donald Trump's unpredictable trade policies.
A valuation gain of 8.6 billion Swiss francs on the central bank's gold holdings narrowed the loss, as the precious metal increased in value by 11% during the year.
The overall loss was in line with UBS estimates for a first-half loss of 10 to 20 billion francs.
"The loss illustrates how damaging the depreciation of the dollar is for the SNB's profits and loss and it will now be very difficult for the SNB to make a profit this year," said UBS economist Alessandro Bee.
($1 = 0.8125 Swiss francs)
(Reporting by John Revill, editing by Miranda Murray and Rachel More)
The Swiss National Bank (SNB) is the central bank of Switzerland, responsible for monetary policy, issuing currency, and ensuring price stability.
Foreign currency losses occur when the value of investments in foreign currencies declines due to unfavorable exchange rate movements.
A valuation gain refers to an increase in the value of an asset, such as gold, which can offset losses in other investments.
Currency movements can significantly affect the financial results of institutions like central banks, impacting the value of foreign investments.
Forex reserves are the foreign currencies held by a central bank, used to influence the exchange rate and maintain liquidity.
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