⬇️ My Thoughts ⬇️
i wrote a thread about what it means for the US dollar to be the reserve currency from the perspective of demand and liquidity you can read it here: https://illya.sh/threads/@1754940239-1.html
this is nothing unusual though - many governments do this, and it's mostly towards stabilizing the exchange rate with USD to a large extent this is a result US dollar's reserve currency status and its dominance in use for all sorts of financial transactions
equity is the residual claim on assets after all liabilities are paid equity = assets - liabilities so the ECB just covers the loss with their equity. this equity reduction is carried forward to be offset by future profits
ECB says that the loss will remain on the balance sheet and will be offset by future profits the loss happened because ECB spent more than earned. they did so by using cash, selling assets or increasing liabilities the net effect is the same: reduction in equity
ECB says that the loss will remain on the balance sheet and will be offset by future profits the loss happened because ECB spent more than earned. they did so by using cash, selling assets or increasing liabilities the net effect is the same: reduction in equity
🇪🇺 ECB's "business model" is as follows: ➕ income: ECB creates money and invests it into financial assets (e.g.: FX, bonds, funds) ➖expenses, such as operational expanses (e.g. staff), facility and open market operation expenses (e.g. TARGET) profit/loss = income - expenses
🇪🇺 ECB's "business model" is as follows: ➕ income: ECB creates money and invests it into financial assets (e.g.: FX, bonds, funds) ➖expenses, such as operational expanses (e.g. staff), facility and open market operation expenses (e.g. TARGET) profit/loss = income - expenses
ECB recorded an €8 billion loss in 2024 - what happens in that case? that's a balance sheet question. to understand what happens we need to look into the operational or "business" model of the European Central Bank
ECB recorded an €8 billion loss in 2024 - what happens in that case? that's a balance sheet question. to understand what happens we need to look into the operational or "business" model of the European Central Bank
this is nothing unusual though - many governments do this, and it's mostly towards stabilizing the exchange rate with USD to a large extent this is a result US dollar's reserve currency status and its dominance in use for all sorts of financial transactions
🇯🇵 Yen's exchange rate stabilization is a responsibility of the Minister of Finance (MoF) MoF is also the holder of Japan's international reserves - not the Bank of Japan so in Japan the government has significant responsibility for USD/JPY
🇯🇵 Yen's exchange rate stabilization is a responsibility of the Minister of Finance (MoF) MoF is also the holder of Japan's international reserves - not the Bank of Japan so in Japan the government has significant responsibility for USD/JPY
and there it is - a new BTC all time high in Euro 🇪🇺🥳
and soon the Eurozone will join the new BTC all time high party 🇪🇺🥳 Bitcoin still hasn't seen a new high in EUR since January 2025 this happened to due the relative appreciation apprtetiation of Euro against US dollar
