ZURICH, March 4 Reuters The Swiss National Bank posted an annual loss of 3.2 billion Swiss francs 3.62 billion for 2023, the central bank said on Monday, as the switch to positive interest rates cost it dearly.

Valuation gains from the SNB39;s gold holdings and interest paid on the emergency loans granted during the emergency rescue of Credit Suisse could not offset the cost of the central bank pursuing a tighter monetary policy to tackle inflation.

During 2023 the SNB bank made a loss of 8.5 billion francs on its Swiss franc positions, mainly caused by interest paid on the sight deposits it holds for commercial banks overnight.

Profits from the SNB39;s near 700 billion francs worth of foreign bonds and stocks were also massively shrunk by the appreciation of the Swiss franc during the year.

The 2023 result, which confirmed the SNB39;s provisional forecast in January, was an improvement from the record 132.5 billion franc loss the central bank posted in 2022.

But it was not enough to allow a dividend payout to shareholders or the Swiss central or regional governments for a second year in a row.

Still, the loss is unlikely to affect monetary policy, with Chairman Thomas Jordan, who announced his departure on Friday, due to announce the latest interest rate decision on March 21.

I don39;t believe that not paying dividends will lead to political pressure on the SNB as the success of its monetary policy is so obvious, said Karsten Junius, an economist at J.Safra…