SNB Reports 6.4 Billion Swiss Francs loss as Rate of Gold Holdings Drops

Gold Bars in Vualts

(Reuters) – The Swiss National Bank described a nine-month loss of 6.4 billion Swiss francs, due to a valuation loss on its gold holdings.

Income from the central bank’s forex positions amounted to 4.0 billion francs it said on Thursday. While the value of its gold reserves dropped 10.7 billion francs.

The SNB on a cap of 1.20 Swiss francs to the euro almost two years ago to help stave off recession and the risk of deflation.

The SNB said the stabilization fund set up to bail out Swiss bank UBS in 2008 repaid the loan granted to it by the SNB parent business in full on August 15.

The centered bank said it now anticipates UBS to exercise its buy choice to take over the stabilization finance before the end of the year.

The SNB’s balance sheet declined by 5.353 billion francs to 500.807 billion francs at the end of Sept versus the end of Dec 2012.