The Swiss National Bank revealed on Tuesday that it sold 132.9 billion Swiss francs ($149.51 billion) worth of foreign currency in 2023, showcasing its elevated focus on strengthening the Swiss franc as a safeguard against imported inflation.
The amount marks a substantial surge from the 22.3 billion francs in foreign currencies sold by the SNB in 2022, coinciding with the commencement of the bank’s reduction of its extensive foreign currency reserves.
The SNB’s tactics have proven successful, as Swiss inflation has remained within its targeted range of 0-2% for the past nine months.
The SNB announced that it would shift its focus away from foreign currency sales upon reaching its objective. The central bank is scheduled to reveal its upcoming monetary policy decisions on Thursday.
In 2023, the Swiss National Bank (SNB) reported an annual loss of 3.2 billion Swiss francs ($3.62 billion), attributing it to the appreciation of the Swiss francs.
The SNB experienced a significant loss of 8.5 billion francs from its Swiss franc positions, primarily due to the increased interest rates paid to banks lodging money overnight.
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