BERLIN – Switzerland's central bank is reporting a hefty loss for the second consecutive quarter after its decision to drop a cap on the franc's value against the euro sent the national currency soaring higher.
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The Swiss National Bank said Friday it lost 20 billion francs ($20.6 billion) in the April-June period, nearly 18 billion francs of that on foreign-currency positions and over 2 billion francs on gold holdings. That brought its total loss for the first half to 50.1 billion francs, including 47.2 billion francs in foreign-exchange losses.
For last year's second quarter, it reported a profit of 11.8 billion francs.
The bank on Jan. 15 abandoned a policy of preventing the euro from trading below 1.20 francs, causing the franc to surge. The euro now buys about 1.06 francs.