Swiss National Bank 'facing losses of $9.48bn'

9 July 2010

The Swiss National Bank (SNB) may have made losses of up to ten billion Swiss francs ($9.48 billion) from its recent interventions in currency markets.

Switzerland's central bank has been attempting to keep the value of the franc down, meaning market analysts expect the bank to report a large deficit when it publishes its results for the second quarter of 2010 next month, reports the Financial Times.

Martin Neff, chief economist of Credit Suisse, said: "It's certain there will be a big loss."

But he added: "A central bank doesn't have to worry about showing nice profits every quarter or about a downgrade from a rating agency so there's no drama."

Precise forecasts cannot be made as SNB does not state the rates at which it has been buying and selling currency.

Last month, SNB announced it is expecting GDP growth in Switzerland of 2.0 per cent for 2010.

Posted by Claire Archer

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