- Swiss Central bank reported a huge loss of $143 billion in the year 2022.
- The loss marked the greatest loss in the history of 116 years.
- The loss is quite alarming as the current loss has a huge difference from the second-highest loss of 23 billion francs in 2015.
Pasak "Bloomberg" ataskaitos, the Swiss Central Bank revealed a total loss of $143 billion for the financial year 2022. John Morgan, the American financier and investment banker tweeted informing the Twitter community about the bank’s biggest loss in “116-Year History.”
An analysis of the previous year’s loss of the bank makes it clear that the current loss is quite alarming for the Swiss centrinis bankas. The losses in the year 2015 ranked the second highest with a loss of 23 billion francs.
Currently, the total loss of 132 billion Swiss francs is equivalent to 18% of Switzerland’s projected GDP of 744.5 billion Swiss francs. Amid the losses, the central bank declared that it wouldn’t make the usual payments to government and state members.
Comparatively, the performance of the Swiss franc has been satisfactory, especially in managing inflations. Over the last six months, the currency has been trading above one euro.
In addition, analysts argued that the Swiss businesses have been successful in beating the competitors despite the rising franc, due to the Eurozone inflation.
Notably, in 2022, the inflation level in Switzerland rose to 3% against the Eurozone inflation of 10%. In December 2022, the Swiss National Bank raised interest rates, marking it for the third time in the year.
Apart from these factors, Swiss banks’ financial trouble has been rooted in many other issues including losses in stock and bond portfolios. However, due to its gold holding, the bank managed to gain 400 million francs.
Source: https://coinedition.com/swiss-central-bank-incurs-143b-loss-biggest-loss-in-116-years/