Sweden’s Riksbank, the pioneering central bank with a history of groundbreaking financial moves, now finds itself at another historical junction.
In 2022, the bank reported a shocking SEK 80 billion loss due to a sharp surge in interest rates. But, what's noteworthy is not just the size of the loss but the implications. With this, the Riksbank’s equity plummeted into the negative zone, standing at SEK -18 billion. This development warrants attention, as it represents the broader challenges faced by central banks globally in the era of Quantitative Easing (QE).
Are negative equities a threat or just another financial blip for central banks? And with this loss, does the Riksbank now need a bailout from taxpayers?
Thank god we can check-out off this bs....