The Western financial system continues to come apart at the seams. Even Switzerland, which has always been famous for its reliable banks, cannot boast of good results.

Citing preliminary figures, the Swiss National Bank posted an annual loss of 132 billion Swiss francs ($143 billion) in 2022, the biggest one in its 116-year history. According to estimates, the regulator lost 131 billion francs ($141.5 billion) from its foreign currency positions and 1 billion francs ($1.08 billion) from the national currency ones. The only profitable asset was gold holdings, which gained 400 million francs ($432 million) in value.

The negative financial performance could be attributed to a steep rise in the Swiss franc last year. In a turbulent 2022 marked by increased European volatility, investors from all over the world opted to invest in a more stable economy. While inflation in the euro area averaged 10%, it stood at 3% in Switzerland. At the same time, "the SNB's colossal losses will not change its monetary policy at all," Karsten Junius, chief economist at J.Safra Sarasin, said. "The high reputation of the SNB helps that it doesn't have to change anything," he added.