The Swiss National Bank reported a CHF 30 billion loss for Q1, its biggest quarterly loss on record.
Income earned from a charge on CHF deposits held by financial institutions at the central bank failed to offset losses on both foreign exchange and gold holdings.
In the same quarter last year it had reported a profit of CHF 4.4 billion.
The loss follows the Swiss central bank’s decision to abruptly end its three-year artificial floor of 1.2000 in EURCHF on 15 January, which sent shock waves throughout the FX market.
The action led to an appreciation of the CHF, resulting in a CHF 29.3 billion loss on foreign currency positions, and, as a result, to exchange rate-related losses on all investment currencies. According to the bank, for the first quarter of 2015, these amounted to a total of CHF 41.1 billion.
The SNB reported that euro-denominated assets made up 42% of its portfolio at the end of March, down from 46% at the end of December, while 32% was held in dollars, up from 29% at the end of 2014.
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