Swiss Central Bank to double payoffs after a whopping $50 billion in profit last year
On Monday, the 2nd of March 2020, the Swiss National Bank (Switzerland’s Central Bank) had issued a statement saying that the borrower had recorded an annual profit of $50.71 billion or 48.9 billion Swiss Franc last year adding the Swiss Central Bank would double up its payoffs to Swiss central and regional Governments.
Besides, according to the SNB’s (Swiss National Bank) Monday’s (March 2nd) announcement, the world’s strongest central bank in terms of austerity measures had reported a net annual profit of 40.3 billion Swiss Franc from its FX currency positions last year, while the SNB had also generated a stark sum of 6.9 billion Swiss Franc from its gold reserves alongside another 2.1 billion Swiss Franc from its domestic currency positions.
Nonetheless, followed by the reveal of the SNB report, a number of analysts were quoted saying that the Swiss Central Bank’s 2019 gains were almost entirely catalyzed by a tempestuous outlook in global trade amid an 18-month long US-China trade stand-off which prompted investors across the globe to bet on safe-haven assets likes of Swiss Franc alongside Japanese Yen.
Besides, as the 113-year-old Swiss National Bank had reported its second-largest annual gain last year, suggesting the borrower could step up its payoffs as much as 4 billion Swiss Franc to the Swiss Federal Govt. alongside other local boroughs, referring to a calamitous 2019 for the global money markets that goaded numerous “flight-to-safety” responses from the investors, a UBS economist, Alessandro Bee said following reveal of Monday’s (March 2nd) SNB annual statement, “Last year was the perfect environment for the SNB to make money.
Bond yields went down, which meant the value of its bonds increased, and its stock holdings increased in value due to the rise in global markets. There was also some uncertainty, which increased the value of the SNB’s gold holdings. ”