Central bank losses in 2022: Central banks of Switzerland, Sweden and Germany

The Swiss central bank has announced its annual result for 2022:

The loss on foreign currency positions amounted to CHF 131.5 billion and the loss on Swiss franc positions was CHF 1.0 billion. A valuation gain of CHF 0.4 billion was recorded on gold holdings. Operating expenses came to CHF 0.4 billion.

For the financial year just ended, the SNB has set the allocation to the provisions for currency reserves at CHF 9.6 billion. After taking into account the distribution reserve of CHF 102.5 billion, the net loss comes to CHF 39.5 billion. Pursuant to the provisions of the National Bank
Act and the profit distribution agreement between the Federal Department of Finance and the SNB, this net loss precludes a distribution for the 2022 financial year. This affects both dividend payments to the SNB shareholders and the profit distribution to the Confederation
and the cantons.

In another development, Sweden central bank does not pay any dividend to the Swedish Treasury as its equity has been wiped out as well:

The General Council of the Riksbank has, in accordance with the Sveriges Riksbank Act, submitted a proposal to the Riksdag (the Swedish parliament) regarding the allocation of the Riksbank’s results for the financial year 2022. As the results for 2022 amount to SEK –80,734 million, the General Council proposes that the Riksbank should not pay any dividend to the Treasury.

Germany central bank first loss in 40 years:

The monetary policy turnaround shaped the Bundesbank’s balance sheet last year. The profit and loss account for 2022 reported a distributable profit of zero. This result was achieved by tapping €1 billion worth of risk provisions. As in the previous years, no profit was transferred to the Federal budget. “The Bundesbank sustained exceptional financial burdens in 2022,” Bundesbank President Joachim Nagel said at the presentation of the Bundesbank’s annual accounts.


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