On February 25 (local time), the Deutsche Bundesbank (Germany's central bank) announced that its balance sheet showed a deficit of 19.2 billion euros in 2024. This is the largest loss in the history of the German central bank and its first book - loss since 1979.
The bank expects deficits to continue in the next few years, though the scale of the losses may decrease. Joachim Nagel, the president of the Deutsche Bundesbank, said when releasing the annual financial report that the peak of financial pressure may have passed.
As early as when the 2024 financial report was announced, Nagel had anticipated difficult years ahead. In the 2023 fiscal year, the losses of the Deutsche Bundesbank were offset by billions of euros in reserves.
Nagel emphasized that the financial situation of the Deutsche Bundesbank is sound. In particular, the valuation reserves for gold are much higher than the current and expected book - losses. The Deutsche Bundesbank will carry forward the current losses to the future and offset them with future profits. The bank's operational ability is not restricted.
One of the most important tasks of the Deutsche Bundesbank is to ensure price stability. Nagel expects that Germany's inflation rate will reach the sustainable target of 2% in 2026.