The Reserve Bank of Australia's deputy governor says the loss will not effect its normal operations.
Australia's central bank has revealed that it has lost A$44.9bn on the bonds it bought as part of its efforts to support the country's economy during the pandemic.
"If any commercial entity had negative equity, assets would be insufficient to meet liabilities and therefore the company would not be a going concern,""Since it has the ability to create money, the Bank can continue to meet its obligations as they become due," she added.The RBA said it plans to keep the bonds until they mature, which means it is likely to eventually make a profit.
For example, in July the Swiss National Bank reported a first-half loss of 95.2bn Swiss francs . That was its biggest loss since it was founded more than a century ago.On Tuesday, the minutes of the RBA's last meeting said its interest rates are now getting closer to "normal settings" after a series of cuts during the pandemic.