Credit: REUTERS/DANIEL MUNOZSYDNEY, Sept 21 (Reuters) - Australia's central bank on Wednesday said its equity had been wiped out by losses suffered on pandemic-era bond buying, but its ability to create money meant it was not insolvent and would continue as normal.
Reserve Bank of Australia (RBA) Deputy Governor Michele Bullock said the bank had taken a mark-to-market valuation loss on its bond holdings of A$44.9 billion ($30.02 billion) in 2021/22.
The losses eclipsed underlying earnings of A$8.2 billion and left the central bank with an accounting loss of A$36.7 billion. It also ate up all the RBA's reserve funds, leaving it with a negative net equity position of A$12.4 billion.
(Reporting by Wayne Cole; Editing by Christian Schmollinger)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
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