Thursday, January 17th 04:03 PM IST

Gold contributes CHF 1.4 billion to Swiss central bank profit

# Swiss National Bank  # CHF  # gold profit  

The bank said its foreign currency positions contributed about 4.7 billion francs in profits, while the rise in gold prices delivered a 1.4 billion gain in the value of its holdings.

ZURICH(BullionStreet): Climbing gold prices helped Switzerland's central bank to post a reasonable $6.4 billion profit last year.

The Swiss National Bank in a statement said it's foreign currency positions also helped to maintain the profit limit from going down further.

In 2011, the Swiss central bank posted a record 13.5 billion franc profit when it was buying a massive amount of euros to hold down the value of the franc.

The bank said its foreign currency positions contributed about 4.7 billion francs in profits, while the rise in gold prices delivered a 1.4 billion gain in the value of its holdings.

As is its custom the bank said it will distribute 1 billion francs of profits among its main shareholders, the federal government and the 26 regional cantons.

The SNB, which will publish more detailed results on March 7, said it will distribute CHF1 billion of its profit to the government and cantons, with the rest being allocated to its reserves.

The Swiss central bank imposed a floor of 1.20 francs per euro in September 2011 to head off deflation and provide relief for the country's exporters.

 

 

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