THE soaring value of the Swiss franc against the euro has led Switzerland’s central bank to report a first half loss of 50billion francs ($F11.09b).
The bank, which is owned by the Swiss federal Government, said the loss could affect its ability to pay a dividend this year.
Those dividends are traditionally used to pay for public services.
Switzerland shocked markets in January when it abandoned its four-year currency peg to the euro.
The move saw the Swiss franc skyrocket in value as investors piled into the currency over fears of a renewed eurozone debt crisis despite the imminent onset of quantitative easing by the European Central Bank (ECB).
The continued strength of the Swiss franc is hurting exports from the country, which are down 2.6 per cent this year. The tourism industry has also reported fewer visitors and retailers are also struggling.
