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Swiss National Bank with high yearly profit drop

The Swiss National Bank (Schweizerische Nationalbank) announced that it has made to a record loss in 2010 after the fall of the euro erodes its foreign reserves. A negative result is estimated at 21 billion Swiss francs (21.8 billion US dollars), said in a statement the bank. This is about 4% of the GDP. The impairment losses on securities have been about 26 billion francs, a gold investment bank has delivered a profit of 6 billion. The Swiss National Bank under the leadership of Philip Hildebrand, make record purchases of foreign currency in the first half of 2010 to devalue the Swiss franc appreciated that threatened to undermine economic recovery and cause deflation. Although this policy was discontinued in June, ever since the debt crisis of the Old Continent and the euro hit at the end of 2010 francs climb of historical high against the single currency from 1.2402 francs per euro.
"The task of the central bank has failed to win, but to ensure price stability," said Fabian Heller, an economist at Credit Suisse. "It's hard to say what would happen if it was the intervention of the bank, but it is extremely hard to fight the markets."
Hildebrand said that although the Swiss franc is strong in practice against all currencies, this represents an enormous burden on the country's economy. He said that Swiss National Bank will act if necessary to counter inflationary or deflationary pressures, arguing that the mandate of the bank is clearly established. The central banker does not specify whether it is planning new interventions.
"I have full confidence in his European counterparts on resolving the debt crisis," says Hildebrand. "The problems are complex because they concern many countries."
The Swiss government said that although the strong franc to the detriment of exports and economic growth, the central bank is the one that decides whether to intervene. The controlling stake in the Swiss Central Bank, which is a joint venture is held by local cantons and cantonal banks and the remainder in the hands of private shareholders.