Swiss National Bank Reports 15.3 Billion Franc Loss on Dollar Slump

The Swiss National Bank (SNB) reported a significant half-year loss of 15.3 billion Swiss francs in 2025, primarily due to a 22.7 billion franc loss on its foreign currency holdings as the US dollar weakened sharply against the franc. This dollar decline, about 12% in the first half of the year, was largely attributed to uncertainties surrounding US President Donald Trump's tariff policies and unpredictable trade stance. Despite an 8.6 billion franc valuation gain on gold holdings, the SNB's results were heavily impacted by exchange rate losses, underscoring the sensitivity of its 727 billion franc foreign currency portfolio to currency fluctuations. The SNB also faced losses of 1 billion francs on Swiss franc positions due to interest expenses on commercial bank deposits, though these costs are expected to decrease following recent policy changes. Market caution grew ahead of the August 1 US tariff deadline, which contributed to the Swiss franc stabilizing after a six-day decline despite strong US economic data and a hawkish Federal Reserve. Analysts have warned that the SNB's losses could threaten its ability to make payouts to the Swiss government and cantons, continuing a trend from previous years when distributions were skipped due to losses linked to its large balance sheet.