The Majority side of Parliament’s Committee on Economy and Development has defended the 2025 financial results of the Bank of Ghana (BoG), stating that the institution’s reported losses reflect the cost of stabilising the economy during a period of severe macroeconomic distress rather than operational failure.
At a press briefing, the caucus said the central bank recorded a net loss of GH¢15.6 billion in 2025, alongside an Other Comprehensive Income (OCI) charge of GH¢19.32 billion and a negative equity position of GH¢96.3 billion. However, it stressed that such figures should not be assessed using commercial banking standards.
“Central banking is fundamentally a public policy function, and its financial outcomes often reflect the cost of stabilising the economy,” the statement said.
Context of recent losses
The caucus noted that the 2025 results must be viewed within the broader context of losses recorded between 2022 and 2024, which totalled about GH¢80.85 billion. These included GH¢60.81 billion in 2022, GH¢10.55 billion in 2023, and GH¢9.49 billion in 2024, during what it described as one of Ghana’s most severe economic crises in recent history.
During that period, inflation peaked at 54.1 percent in 2022 before declining to 23.8 percent by the end of 2024. The Ghana cedi also depreciated significantly, reaching about GH¢17 to the US dollar by December 2024.
Despite these challenges, the caucus highlighted improvements in key macroeconomic indicators in 2025. Inflation dropped sharply to 5.4 percent by the end of the year and further to 3.2 percent by March 2026. The cedi also appreciated by about 40.7 percent against the US dollar.
Gross International Reserves rose from approximately US$9.3 billion in 2024 to about US$13 billion in 2025, providing 5.7 months of import cover. Economic growth strengthened, with GDP expanding by 6.0 percent and non-oil GDP growing by 7.8 percent.
Policy measures behind the losses
According to the caucus, the financial losses were largely driven by deliberate policy interventions. It cited the Domestic Debt Exchange Programme (DDEP), which reduced interest income on government securities and led to an estimated shortfall of GH¢13 billion.
Additionally, the BoG incurred about GH¢16.7 billion in interest costs through aggressive Open Market Operations aimed at controlling inflation and absorbing excess liquidity.
The appreciation of the cedi also resulted in accounting valuation losses on foreign assets, while the Bank’s gold accumulation programme generated charges of about GH¢9 billion despite its long-term benefits.
Negative equity not insolvency
The caucus emphasised that the BoG’s negative equity position does not imply insolvency or inability to function.
“Negative equity in central banking is an accounting condition and does not imply insolvency. Central banks are not profit-maximising institutions; rather, they are stabilising institutions,” the statement said.
It pointed to global examples, including the European Central Bank, Federal Reserve, and Reserve Bank of Australia, which have recorded losses during periods of policy tightening.
Outlook and recapitalisation plans
Looking ahead, the caucus expressed optimism that the financial pressures on the central bank will ease as liquidity conditions normalise, exchange rate volatility declines, and the effects of the DDEP unwind.
It also noted that government plans to recapitalise the BoG under an appropriate legal framework will help strengthen its balance sheet over the medium term.
The caucus urged the public and analysts to assess the central bank’s performance based on broader economic outcomes rather than accounting figures alone, pointing to declining inflation, a stabilised currency, rising reserves, and improved economic growth.
It reaffirmed its commitment to parliamentary oversight to ensure continued transparency and accountability in the management of the economy.
