Swiss National Bank with a loss of 12 billion francs - share and bond prices fall

Swiss National Bank with a loss of 12 billion francs - share and bond prices fall

According to a report by amp2.handelsblatt.com, the Swiss National Bank (SNB) recorded a loss of twelve billion francs in the third quarter. This loss is primarily due to falling stock and bond prices. The loss on foreign currency holdings amounted to 9.2 billion francs.

In addition, there were also losses in the franc positions, which amounted to 2.7 billion francs, and the gold holdings were worth 132 million francs less. Despite these losses, the SNB was still able to record a profit of 1.7 billion francs at the end of the quarter.

This result of the SNB depends heavily on the fluctuations in the value of its foreign exchange reserves, which are worth hundreds of billions of francs, including stocks and bonds from abroad. The SNB has bought euros and other currencies in recent years to prevent an economically damaging appreciation of the franc, which is considered a safe haven.

The SNB's loss in the third quarter could have an impact on the market and the financial industry. Falling stock and bond prices could weaken investor confidence and lead to increased volatility. This, in turn, could lead to losses for investors and financial institutions. The increase in the loss on the SNB's foreign currency holdings suggests that the Swiss franc has increased in value against other currencies, which can have both positive and negative effects.

Positive effects could be that the strengthened currency makes Swiss exports more expensive, which could boost the domestic market and the economy. However, a negative impact could be that a strong currency affects tourism and foreign investment by making it more expensive to travel to or invest in Switzerland.

It remains to be seen how the SNB's losses will affect the market and the financial industry. Volatility could continue to increase and lead to uncertainty. Investors and financial institutions may need to rethink their strategies to deal with current market developments.