• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

France's Central Bank Faces Unprecedented €17.7 Billion Loss in 2024

user avatar

by Giorgi Kostiuk

3 months ago


In 2024, the Bank of France finds itself facing an unprecedented financial situation, recording an operating loss of €17.7 billion. This loss highlights the deep vulnerabilities within the European financial system, exacerbated by inflation, rising interest rates, and public debt management.

The source of the colossal loss

The Bank of France recorded a loss of €17.7 billion in 2024 due to the management of its government bond portfolio amid fluctuating interest rates. Reasons for the loss include massive purchases of low-yield bonds during the crisis, a gap between interest rates of assets and liabilities, insufficient yields, and uncompensated losses. These factors explain the nature and extent of the loss and highlight the vulnerabilities within the European financial system.

The implications for the state and prospects

The situation raises major concerns regarding French public finances. The net loss of €7.7 billion in 2024 prevents the Banque de France from paying dividends to the State, reducing available resources. Although partially offset by reserves, the loss shows a critical trend that began in 2023 with a deficit of €12.4 billion. Financial authorities expect losses to decrease in 2025 if economic conditions improve.

Long-term impact and analysis

Recurring losses may force the State to reassess its economic priorities, potentially leading to adjustments in budgetary policy. The loss underscores weaknesses in the European economic system and questions the sustainability of current monetary policy. The ongoing uncertainty regarding interest rate changes and their impact on public finances prompts serious consideration of the future of the welfare state and the management of public finances in France.

The Bank of France's losses in 2024 reveal significant vulnerabilities in the European financial system, necessitating a reassessment of debt management strategies and highlighting the need for a sustainable economic approach amidst a changing economic landscape.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Ethereum Proposes Gas Limit to Enhance Network Stability

chest

Vitalik Buterin and Toni Wahrstätter propose a 16.7 million gas cap for each Ethereum transaction to improve network reliability.

user avatarGiorgi Kostiuk

Jeremie Davinci Shares Simple Bitcoin Investment Strategy

chest

Jeremie Davinci offers a straightforward strategy for successful Bitcoin investing, focusing on discipline and emotion-free decision-making.

user avatarGiorgi Kostiuk

Dogecoin: Steady Growth and ETF Approval Expectations

chest

Dogecoin price steadily rises, nearing the upper boundary of the pattern, with expectations for ETF approval.

user avatarGiorgi Kostiuk

Record High for ERC-20 Stablecoin Supply

chest

ERC-20 stablecoin supply reaches a record $121 billion, indicating increasing demand in the crypto economy.

user avatarGiorgi Kostiuk

Bittensor (TAO): How High Could the Price Go If It Enters the Top 10?

chest

Bittensor (TAO) may reach new heights in the cryptocurrency rankings. Discover how this could impact its price.

user avatarGiorgi Kostiuk

Shiba Inu (SHIB) May Form Death Cross on Weekly Chart

chest

Shiba Inu (SHIB) approaches a death cross on the weekly chart, signaling potential further declines.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.