The French central bank announced a loss of EUR7.7 billion ($8.4 billion) for 2024, signifying its intent to recover these losses through profits in the future.
The bank indicated that the gradual decline in the interest rate on European Central Bank (ECB) deposits, alongside a reduction in its bond holdings, will play a role in mitigating the losses in the upcoming years.
“We project the Bank of France will return to profit in a limited number of years,” stated Francois Villeroy de Galhau, governor of the French central bank, while addressing reporters.
Many central banks are facing financial losses attributed to increasing interest payments on excess liquidity deposited with commercial banks, which currently surpass the yields on the bonds held by these institutions.
The German Central Bank reported a loss of EUR19.2 billion ($20.93 billion) for 2024, while the European Central Bank faced a loss of EUR7.9 billion ($8.61 billion) during the same timeframe.
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