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0715, 21 Sep 22

Australian Central Bank Promises to Print More Money After COVID Losses

This is not good.

Australia’s central bank has revealed that it has lost A$44.9bn ($30bn; £26.3bn) on the bonds it bought as part of its efforts to support the country’s economy during the pandemic.

The Reserve Bank of Australia’s (RBA) deputy governor says that wiped out the bank’s profit for the 2021-22 year, leaving a net loss of A$36.7bn.

 

The bonds were accumulated under a A$300bn emergency stimulus programme.

 

However, the bank says the loss will not affect its normal operations.

 

“If any commercial entity had negative equity, assets would be insufficient to meet liabilities and therefore the company would not be a going concern,” RBA deputy governor Michele Bullock said.

“Since it has the ability to create money, the Bank can continue to meet its obligations as they become due,” she added.

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0715, 21 September 2022

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