Posted on 01/09/2023 9:51:51 AM PST by Red Badger
Jan. 9 (UPI) -- The Swiss National Bank said Monday it was anticipating a $143 billion loss for 2022, the steepest loss in the bank's 116-year history.
The bank said this is only a provisional calculation for 2022 performance. Though it took a hit last year, the bank said it was expecting a $4.5 billion profit from its gold holdings.
Its positions in gold could be supportive during the new year, according to a research note from Denmark's Saxo Bank. Analysts there said precious metals in general are in vogue.
"Gold's newfound resilience and momentum from December has been carried over to January as investors seek shelter from what has been forecast to be another challenging year, especially for those with exposure to equities," analysts wrote.
Elsewhere, however, the bank took a good hit on currencies. It estimates the loss from the valuations of its holding in foreign currencies came at around $140 billion. As a result, it will not be able to make its usual payouts.
Analysis from Bloomberg news finds the staggering loss from the Swiss bank is a reflection of how central banks are adjusting to the new financial environment of higher inflation and a war premium for major commodities stemming from the conflict in Ukraine.
Like Switzerland, the Bank of England, for example, is putting money back into the Treasury to cover expected losses from its bond purchasing program rather than funneling money over to the public purse.
Bank policies meant to curb inflation, meanwhile, are affecting the value of national currencies, partially explaining the loss for the Swiss bank.
But it may be even more of an ominous loss considering the performance of the Swiss economy. The central bank's lending rate is only 1% and inflation is running at around 3%, compared with British and eurozone inflation of around 10% on an annual basis.
The bank recorded a $28.3 billion profit in 2021.
RELATED
And... it’s gone.
More FTX fallout?
What’s a few billion among Swiss bankers?
Where did it go?
If you have a brain invest in land. not gold or money.
Though it took a hit last year, the bank said it was expecting a $4.5 billion ***profit*** from its gold holdings.
profit comes from sales, not holdings... damn
Mark to Market
Crypto is the best way to make billions and billions disappear without a trace.
If they lost that much on foreign currency they had to be trading on margin and wildly speculating.
This is the Swiss version of the Federal Reserve, not private money
Mark to Market is what this is about, not Crypto, not speculation.
If our Federal Reserve had to mark their assets to market, this loss would be tip money.
It’s their CENTRAL BANK
Everyone needs to READ the article
The Swiss Central Bank decided to fight the markets to keep the Swiss franc competitive. The Swiss rely on exports. Inflation in Switzerland was much lower than the rest of the Euro Zone and investors were flocking to the Franc, hence the need to utilize assets to fight the open market trend.
According to the article, profits for this usually flow to the governments (in Switzerland, much of the spending is at the Canon level, not the Federal level) to support their budgets.
This year there won’t be money passed on.
It’s not Crypto, not speculating; just normal Central Bank operations to support how the Swiss economy runs.
Not a problem. We’ll just ship them more American printed dollars, just as we did with Credit Suisse and the UK.
Who cares, most of their money is blood money or derived from it. Let them go broke.
increase in value or equity, profit has always been defined as selling at higher than bought
Mark to market (MTM) is a method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution’s or company’s current financial situation based on current market conditions.
holey shite, batman!
The problem with land is real-estate taxes make it expensive as a passive investment.
It said currency exchange. On January 9th, 2022 one U.S. Dollar cost 1.09 Swiss Franc. On January 9th, 2022, one U.S. Dollar cost 0.92 Swiss Franc. For every one billion U.S. Dollars the bank held, even if they never bought or sold a single one all year, they would have lost, on paper, 156 million Swiss Franc, valued at 169,500,000 U.S. Dollars at the end of the year. A lot of currencies were beat up even worse, and the Swiss may be holding a lot of Euros, British Pounds, and other similarly disadvantaged currencies. And likely a lot more than one billion U.S. dollars.
—”The problem with land is real-estate taxes make it expensive as a passive investment.”
Buy land, they are not making it anymore!
Can only go up?
That sales guy didn’t lie did he?
You've never been to Holland, I take it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.