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Swiss National Bank posts $15 billion loss during second quarter
Global Banking & Finance Review®
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ZURICH (Reuters) – The Swiss National Bank posted a second quarter loss of 13.20 billion Swiss francs ($15.14 billion), it said on Monday, as interest rate hikes by other central banks dented the value of its massive bond holdings.
ZURICH (Reuters) – The Swiss National Bank posted a second quarter loss of 13.20 billion Swiss francs ($15.14 billion), it said on Monday, as interest rate hikes by other central banks dented the value of its massive bond holdings.
The SNB lost 8.08 billion francs on its foreign currency positions of 742 billion francs, as bond prices fell as investors feared more interest rate hikes by the U.S. Federal Reserve, European Central Bank and others.
The Swiss central bank also lost 3.14 billion francs on its gold holdings in the three months to the end of June, as the lower gold price cut the value of the 1,040 tonnes of the precious metal it holds.
($1 = 0.8716 Swiss francs)
(Reporting by John Revill, Editing by Rachel More)
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It also oversees the banking system and aims to maintain financial stability.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and economic conditions.
Gold holdings refer to the amount of gold owned by an entity, such as a central bank, as part of its reserves. Gold is often used as a hedge against inflation and currency devaluation.
Foreign currency is any currency that is not the domestic currency of a particular country. It is used in international trade and investment transactions.
A financial crisis is a situation where financial assets suddenly lose a large part of their nominal value. It can lead to economic downturns and instability in financial markets.
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