Switzerland’s central bank has reported a first half loss of 50bn francs (£33bn) following the soaring value of the Swiss franc against the euro.
The bank, which is owned by the Swiss federal government, said the loss could affect its ability to pay a dividend this year which are traditionally used to pay for public services.
Switzerland had shocked markets in January when it abandoned its four-year currency peg to the euro.
The move saw the Swiss franc skyrocket in value as investors piled into the currency over fears of a renewed eurozone debt crisis despite the imminent onset of quantitative easing by the European Central Bank (ECB).
Peter Hegglin, the head of Switzerland’s 26 canton finance directors, said he was “not going to assume” that the first half loss would mean the SNB would not be paying a full year dividend, suggesting the bank could still reverse its fortunes.
