BERN: The SNB said it suffered currency-related losses of 41.1 billion francs in the first three months of the year. The losses occurred as a result of the central’s bank’s decision on January 15th to discontinue the minimum euro exchange rate of of 1.20 francs.
FX traders immediately bid up the value of the franc, driving it to near parity with the euro. The appreciation of the franc led to “exchange-related losses on all investment currencies”. The currency losses were accompanied by a one-billion-franc drop in the bank’s gold holdings, while this was offset by gains in interest income, dividends and investments in equities. The first quarter loss contrasts with the 38-billion-franc profit the SNB reported for the 2014 year.
