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IPFS News Link • Switzerland

The Swiss national bank is now in trouble after facing the biggest loss in 115 years!

• Linkedin - Dr. Marco Metzler

The record loss has now also affected the different states within Switzerland, this has also called the stability of the national bank into consideration. The loss was caused due to foreign currency which the Swiss national bank is holding. The actual plan for holding foreign currency was to turn this into profits but this year it has turned the so-called profit into a big loss.

The main factors for this financial event were the inflation of the Ukraine war and the anxiety of people and investors about the upcoming recession. These factors combined have drastically decreased the stock market and the interest rates which are skyrocketing are not making things better. Adding to this the high-interest rates caused a hike in reviewing losses in the stock market. Nevertheless, the appreciation regarding the Swiss franc and the Euro has brought the Swiss national bank tremendous losses.

The Swiss national bank is not responsible to create profit, its main responsibility is to keep prices steady and to keep inflation in control, and it did this job tremendously well for years. Now though the inflation reported at around 3.3 percent in September which is far above the current goal of the Swiss national bank.