The central bank of Switzerland recorded a loss of 9.1 billion of Swiss francs in 2013 and decided not to distribute a dividend for the first time in 107 years of history, because of reduction in the price of gold, says a report in the electronic edition of the Wall Street Journal. The value of the stock of central bank gold decreased by 15.2 billion Swiss francs or 17.3 billion dollars, exceeding the earnings of 6.5 billion francs that was due to exchange positions and from the sale of a fund troubled assets acquired by the bank UBS. The gold price fell 28% last year, the biggest decline since 1981. The SNB warned in January that gold stocks will lead to injury and will not be forced to pay dividends and normal payments in 26 provinces or cantons of Switzerland.
Noted that the Swiss central bank is among the largest holders of gold in the world. The price of gold began to decline last spring amid speculation that the Federal Reserve Bank (Fed) would reduce the bond markets as the U.S. economy grew without concern for inflationary pressures. The bond purchases by the Fed have strengthened the demand for gold as a means of protection against inflation risks that these could cause.
By Nicole P.