ZURICH, April 23 (Reuters) - The Swiss National Bank made a loss of 500 million Swiss francs ($636.70 million) for the first quarter, the central bank said on Thursday, as gains in gold prices were
Swiss central bank posts Q1 loss of 498 million Swiss francs
Swiss National Bank Q1 2024 Financial Results Overview
Q1 Loss Driven by Foreign Currency Holdings
ZURICH, April 23 (Reuters) - The Swiss National Bank made a loss of 498 million Swiss francs ($634.15 million) for the first quarter, the central bank said on Thursday, as gains in gold prices were cancelled out by declines in the value of its foreign currency holdings.
Decline in Value of Shares and Bonds
The SNB incurred a loss of 8.2 billion francs on its investments held in foreign currencies, triggered mainly by a decline in the value of shares and bonds.
Impact of Interest Rates and Equity Markets
Bonds have fallen in value as investors started to price in higher interest rates by central banks later this year, while equity markets have also struggled, with the Stoxx World Index down nearly 4% in the first quarter.
Gold Holdings Provide Some Relief
In contrast, the SNB reported a valuation gain of 7.8 billion francs on its gold holdings, as the precious metal continued to gain in price.
Gold Price Performance in Q1
In franc terms, gold was trading 6.8% higher during the first quarter, boosting the value of the SNB's 1,040 tonnes of gold.
Exchange Rate and Reporting Credits
($1 = 0.7853 Swiss francs)
(Reporting by John RevillEditing by Ludwig Burger)
