Swiss central bank achieves record $18 bln net profit

Swiss Central Bank announced on Wednesday a record net profit of USD 18 billion in the first three quarters of the year, driven by developments in the gold, currency and capital markets. These profits were a result of the global rise in gold prices, which reflected on the value of gold reserve, the bank said in a statement from its headquarters in the capital Bern. The statement added that the high exchange rate of the Swiss franc against major currencies added to stock profits from foreign exchange. More than a year ago, the Swiss central bank has enforced a minimum exchange rate of the euro against the franc to halt the rise in the exchange rate of the national currency and its negative impact on the local economy, especially in exports. Those profits will be reflected positively on the quotas obtained by the Swiss provinces of the central bank's profits in accordance with the prevailing laws in the sharing of local resources, which will revive the domestic economy. In the second quarter of the year, the bank had to purchase large amounts of foreign currencies to maintain the exchange level of the euro at 1.2 franc, and had to spend USD 543 billion of which 80-90 percent were invested in government bonds and the rest in different shares. According to the current prevailing exchange rates, bank observers see these profits as calculation ones as they fear the future of a single European currency, especially since the euro represents half of the value of the bank's stock of foreign exchange market. It is unexpected that Switzerland's central bank would change its policy in dealing with foreign exchange or interest rates as European and global economic indicators seem unclear, but suggest stages of recession and depression.