Forex loss curbs SNB results in first half 2017

Switzerland's central bank on Monday reported a net profit of 1.2 billion Swiss francs for the first half of 2017 as big foreign exchange losses weighed on earnings from its foreign investments.

The Swiss National Bank made a profit of 100 million francs from its foreign currency positions, as exchange related losses of 11.8 billion francs almost wiped out the earnings from bonds and shares it holds.
The institution's foreign currency investments have ballooned to 728 billion francs, 12% larger than the entire Swiss economy.

"Exchange rate gains on the euro did not offset losses recorded on other investment currencies, particularly the U.S. dollar," the SNB said on Monday.

The bank made a valuation gain of 300 million francs from its gold holdings and 970 million francs from the negative interest rates it charges on banks, a cornerstone of its campaign to weaken the Swiss franc.

Making a profit is not part of the SNB's monetary policy mandate, with its with its main target to ensure price stability in Switzerland.