“The central bank has had to mark the value of its holdings to market, resulting in a A$44.9 billion (US$30.0 billion) valuation loss. Offset by A$8.2 billion (US$5.5 billion) in underlying earnings from the central bank’s holdings, and it is posting a net loss of A$36.7 billion (US$24.5 billion).”
I think the Australian central bank is being a little more forthright than other central banks. What would the European Central Bank or the Federal Reserve balance sheet look like if the marked their bond portfolio to market?
https://realmoney.thestreet.com/investing/global-equity/australia-s-central-bank-says-it-is-bust-16103021
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Published by markskidmore
Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.
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