RBA reveals $4.3bn accounting loss

Australia’s Reserve Bank made a multibillion-dollar loss on its securities and foreign exchange transactions during last financial year as unrealised valuation losses. The RBA recorded a $4.3 billion accounting loss in the 2020-21 financial year.

The RBA admitted higher interest rates could further hit its bottom line while beefing up the federal budget with a $2.7 billion dividend payment.

The Reserve Bank has recorded one of the biggest financial losses in its history. It is the bank’s second largest loss, only surpassed by a $4.9 billion loss in 2010-2011.

Investors and traders eye speech by Philip Lowe the governor of Australia’s central bank Thursday.