Wednesday, July 21, 2010

SNB Loses 14 Billion Swiss Francs On Euro's Fall

At least they have managed to make a few Hungarian home owners (temporarily) happy.... ;-)

Immerhin hat die SNB es geschafft etlichen ungarischen Immobilienbesitzern ( vorübergehend ) Freude zu bereiten.....;-)

Marketwatch

The Swiss National Bank on Wednesday said the sharp rise of the Swiss franc, particularly against the euro, resulted in exchange-rate losses of more than 14 billion Swiss francs ($13.3 billion)in the first half of 2010.

But income from foreign-currency and Swiss franc positions and the steep rise in the price of gold limited the central bank's first-half loss, which is expected to total around 4 billion Swiss francs, the SNB said.

The SNB, which had intervened heavily in an effort to brake the decline of the versus the Swiss franc, said it increased foreign-currency investments by around 132 billion francs in the first half of 2010, with the bulk placed in euro-denominated investments

Swiss National Bank Confirms Massive FX Intervention Losses, As Spike In M3 Reported via ZH

Following such a massive losses for the small country (nearly 2% of GDP) it was only a matter of time before the other 26 Swiss cantons, which share in the profits and losses of the SNB, said enough.

"The SNB said last month it had stopped intervention. Its official reason was because deflationary risks from the surging currency had declined, but most economists ascribed the move to growing concerns about the risks from the massive foreign currency holdings."

The "success" to weaken the Swiss Franc can be clearly be seen in this chart......

Der "Erfolg" den Anstieg des Schweizer Franken zu verhindern wird im nächsten Chart eindrucksvoll veranschaulicht......

If they continue to fight the inevitable the SNB is on track to beat even their ""GOLDen Masterpiece"....

Sollte die SNB weiterhin versuchen das Unvermeidliche durch Interventionen zu verhindern bzw zu verlangsamen bestehen gute Chancen selbst Ihr bisheriges "Meisterstück" in Sachen GOLD noch zu toppen....

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2 Comments:

Blogger jmf said...

Nomura thinks you should be more bearish on Hungary FT Alphaville

7:06 AM  
Blogger jmf said...

Yield On Hungary's12 Month Bill Surges To 5.75% In First Auction Post IMF Relationship Collapse ZH


Yields on Hungary 12 Month Bills surged in the just completed Bill auction, jumping to 5.75%, or by 32 bps, since the last auction two weeks. This is just tight of what Greece would likely have to pay for a comparable maturity. Investors were focused on this deal as it was the first issuance by the troubled country since the breakdown in IMF relations over the weekend, leaving the country in the liquidity cold and without a €25 billion lifeline

7:08 AM  

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