Zurich, Switzerland (GenevaLunch) – The Swiss National Bank expects to see a “large profit” of CHF10 billion for 2009, thanks to the rapid rise in the price of gold and currency fluctuations during the year. The valuation of the gold holdings of the central bank rose by CHF7.3 billion during the year, with the price of gold moving between about $800 and $1,200 an ounce (chart).
The bank’s foreign currency positions brought in another CHF2b.
The profits are shared in part with the federal and cantonal governments, some CHF2.5b.
A large share, CHF4b, will go to the distribution reserve, which is built up in good years to ensure adequate reserves in weak years. The bank had a loss of CHF4.3b in 2008, but profits of CHF7b in 2007, with the price of gold an dcurrency fluctuations accounting for the changes each year.
The reserve will now stand at CHF19b. Another CHF3.5b will go to reserve assets.
This work by genevalunch.com is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported.
News story, GenevaLunch, 21 January 2010.
Filed under: Business
Tags: 2009, cantons, central bank, currency fluctuations, federal government, gold, Politics, profits, reserves, shared, SNB, Swiss National Bank
March 4th, 2010 at 11:10 am
[...] – The Swiss National Bank ended 2009 with a profit of CHF10 billion, in line with estimates published 21 January. The bank attributes the turn-around from a CHF4.7b loss in 2008 to “substantial valuation [...]