The largest year loss in the 115-year history of the Swiss National Bank was recorded in 2022 when it lost 132 billion Swiss francs ($143 billion), as collapsing equity and fixed-income markets reduced the value of its share and bond portfolio.
A stronger Swiss franc had a detrimental effect as well.
The preliminary figure released on Monday was far higher than the previous record loss of 23 billion francs recorded in 2015. It represented a reversal from a profit of 26 billion francs in 2021. It is comparable to slightly more than Morocco’s yearly GDP.
On March 6, the SNB will present comprehensive yearly results.
The more than 800 billion francs in stocks and bonds it purchased during a protracted drive to devalue the Swiss franc resulted in a loss of 131 billion francs on its foreign exchange positions.
Last year, as central banks all over the world, including the SNB, increased interest rates to fight inflation, global stock markets declined and bond prices plunged.
Exchange rate losses were caused by the strong Swiss franc, which in July surged above parity against the euro.
Karsten Junius, an economist at J.Safra Sarasin stated, “The SNB’s colossal losses will not change its monetary policy at all. The high reputation of the SNB helps that it doesn’t have to change anything.”
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