SNB Sees $10 Billion Loss for 2013 as Gold Price Plummets

Switzerland’s central bank will scrap its annual payment to the government for 2013 after a gold-price decline caused a loss of 9 billion francs ($10 billion).

The 30 percent drop in the gold price in Swiss franc terms resulted in a 15 billion-franc valuation loss for the SNB, offsetting a gain of about 3 billion francs on its foreign-currency positions and a profit of more than 3 billion francs from the sale of its fund of UBS AG assets, the Zurich-based institution said in a statement today.