Bank Stress Tests May Compound Losses for Swiss National Bank
Forex Playbook submits:
The Swiss National Bank’s intervention efforts aimed at weakening the franc relative to the euro has resulted in $13.3 billion dollars in losses. However, the real pain may still await the central bank ahead of the eurozone’s stress test results slated for Friday release.
Unlike other central banks, the SNB issues shares and is publicly traded. Bloomberg estimates that the bank suffered a second quarter loss of 5.5 billion francs compared to a 1.5 billion franc gain in the first quarter. Final results are scheduled for release on August 13.
